Question: Please answer correctly snd in return i will provide a thumbs up thank you. Marigold Corp. is considering the replacement of a piece of equipment
Marigold Corp. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment Purchase price $189000 $315000 Accumulated 75600 -0- depreciation Annual operating 252000 201600 costs If the old equipment is replaced now, it can be sold for $50400. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. The company uses straight-line depreciation with a zero salvage value for all of its assets. For the 5-year period, what is the increase or decrease in net income associated with the new equipment? $75600 O $(63000) O $50400 O $(12600)
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