Vaughn Company has a factory machine with a book value of $158,000 and a remaining useful life of 6 years. A new machine is available for $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 New machine cost $ $ tA tA $