Tanner Company has old equipment with a book value of $160,500 and a remaining five-year useful life. Tanner is considering purchasing new equipment at a price of $201,000. Tanner can sell the old equipment now for $134,000. The old equipment has variable manufacturing costs of $73,000 per year. The new equipment will reduce variable manufacturing costs by $29,500 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 $32,100 decrease. $57,000 decrease $144,000 increase