Question: Patrick Co. has a machine with a book value of $109,000 and a remaining five-year useful life. A new machine is available at a cost

Patrick Co. has a machine with a book value of $109,000 and a remaining five-year useful life. A new machine is available at a cost of $120,500, and Patrick can also receive $75,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $23,000 per year over its five- year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental income From Replacing Machine Incremental income (incremental cost)

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