Tanner Company has old equipment with a book value of $150,000 and a remaining five-year useful life. Tanner is considering purchasing new equipment at a price of $180,000. Tanner can sell the old equipment now for $120,000. The old equipment has variable manufacturing costs of $66,000 per year. The new equipment will reduce variable manufacturing costs by $26,000 per year over its five-year useful life. The total increase or decrease in net income by replacing the old equipment with the new equipment is: Multiple Choice $30,000 decrease. $130,000 increase $50,000 increase $50,000 decrease $70.000 increase