Question: Dragoo Building Inc. has a crane with a book value of $260,000 and a 4-year remaining life. A new crane is available at a cost

Dragoo Building Inc. has a crane with a book value of $260,000 and a 4-year remaining life. A new crane is available at a cost of $635.000. Dragoo can also receive $50,000 for trading in the old crane. The new crane will reduce variable costs by $149,100 per year over its four year life. The total impact to Dragoo over the crane's four-year life is: Multiple Choice Decrease of $50,000. 0 Increase of $23,000 0 Decrease of $635.000 0 Increase of $1,400 0 Decrease of $11,400

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