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this is all the information provided The following data apply to questions 4 through 6. Wally Lewis is a manager of the engineering development division

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The following data apply to questions 4 through 6. Wally Lewis is a manager of the engineering development division of Goldcoast Products. Lewis has just received a proposal signed by all 15 of his engineers to replace the workstations with networked personal computers (networked PCs). Lewis is not enthusiastic about the proposal. If Wally Lewis replaces the existing workstation with the new one, over the next three years, operating income will A. increase by $50,000 B. decrease by $50,000 c. increase by $75,000 D. decrease by $75,000 QUESTION 6 If Wally Lewis sells old workstations and replaces with new ones, how much of gains or losses on sales of old workstations should be recognized for the financial reporting purpose? A. Loss $67,500 B. Loss $85,000 C. Gain $89,000 D. Gain $72.000 The following data apply to questions 4 through 6. Wally Lewis is a manager of the engineering development division of Goldcoast Products. Lewis has just received a proposal signed by all 15 of his engineers to replace the workstations with networked personal computers (networked PCs). Lewis is not enthusiastic about the proposal. If Wally Lewis replaces the existing workstation with the new one, over the next three years, operating income will A. increase by $50,000 B. decrease by $50,000 c. increase by $75,000 D. decrease by $75,000 QUESTION 6 If Wally Lewis sells old workstations and replaces with new ones, how much of gains or losses on sales of old workstations should be recognized for the financial reporting purpose? A. Loss $67,500 B. Loss $85,000 C. Gain $89,000 D. Gain $72.000

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