Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered:

Old Machine New Machine

Purchase Price $300,000 $600,000

Accumulated Depreciation 90,000 -0-

Annual operating costs $240,000 $180,600

If the old machine is replaced, it can be sold for $30,000. Both machines have a remaining useful life of 10 years.

The net advantage (disadvantage) of replacing the old machine is

Group of answer choices

$30,000

12,000

$24,000

$120,600