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  3. riener hospital has an x-ray machine with a book v

Riener Hospital has an x-ray machine with a book value of $60,000 and a remaining...

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Accounting

Riener Hospital has an x-ray machine with a book value of $60,000 and a remaining useful life of three years. At the end of the three years the equipment will have a zero-salvage value. Reiner can sell the old machine now for $32,000 and can purchase a new machine for $145,000. The old machine has variable manufacturing costs of $50,000 per year. The new machine will reduce variable manufacturing costs by $27,000 per year over the three-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:
a. $32,000 decrease
b. $76,000 increase
c. $18,000 decrease
d. $52,000 increase
e. $22,000 increase
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