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Thornton Company is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows. Existing Equipment

Thornton Company is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows.
Existing Equipment Replacement Equipment
Historical cost $ 113,000 Market price $ 119,000
Operating expenses*101,000 Operating expenses*102,000
Salvage value 28,000 Salvage value 17,000
Market value 48,000 Useful life 6 years
Book value 35,000
Remaining useful life 6 years
*The amounts shown for operating expenses are the cumulative total of all such expected expenses to be incurred over the useful life of the equipment.
Required
Calculate the total relevant cost of existing equipment and the potential replacement equipment.

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