Question: Dragoo Building Inc. has a crane with a book value of $243,000 and a 4-year remaining life. A new crane is available at a

Dragoo Building Inc. has a crane with a book value of $243,000 and a 4-year remaining life. A new crane is available at a cost of $618,000. Dragoo can also receive $48,300 for trading in the old crane. The new crane will reduce varlable costs by $145,300 per year over its four-year life. The total impact to Dragoo over the crane's four-year life is: Multiple Choice Increase of $23,000. Increase of $11,500. Decrease of $618,000. Decrease of $48,300. Decrease of $11,500.
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