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Lopez Company is considering replacing one of its old manufacturing machines. The old machine has...

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Accounting

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Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $45,000 and a remaining useful tife of four years. It can be sold now for $55,000. Varlable manufacturing costs are $47,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is four years. (o) Compute the income increase or decrease from replacing the old machine with Machine A. (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should topez keep or replace its old machine? (d) If the machine should be replaced, which new machine should topez purchase? Compute the income increase or decrease from replacing the old machine with Machine A. Note: Amounts to be deducted should be indicated with a minus sign. Compute the income increase or decrease from replacing the old machine with Machine B. Note: Amounts to be deducted should be indicated with a minus sign

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