Vaughn Company has a factory machine with a book value of $158,000 and a remaining useful life of 6 years. A new device is available at a cost of $245,000. This machine will have a 6-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $591,500 to $496,000. Prepare an analysis that shows whether Vaughn should retain or replace the old machine. (If an amount reduces the net income then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) Keep Equipment Replace Equipment Net Income Increase (Decrease) Variable costs 496,000 tA New machine cost 245,000 tA 158,000