Please help with this work sheet. I need help on how to solve this.

Last year I'm`TEL. Simmons Company installed new factory Equipment The owner of the company , LENE Simmons , recently returned from an industry Equipment Exhibition where he watched computerized Equipment demonstrated . He was impressed with the Equipment'E EFEED and cast Efficiency . Upon returning from the Exhibition , he asked his purchasing agent to collect price and operating cost data on the new Equipment . In addition , he asked the company's accountant to provide him with cast data on the company's Equipment This information is presented below . Old Equipment HOW Equipment Purchase ONCE BEGOOOD Estimated salvage value* Estimated useful lite 5 YEETE Depreciation method Straight- line Straight - line Annual Operating costs other than depreciation - Variable 5.50, 00 0 $12, 000 FIXED 5, 000 Annual revenues are Saba. OUT, and selling and administrative Expenses are $45, COU, regardless of which Equipment is used . If the old Equipment is replaced now , at the beginning of 2LYF, Simmons Company' will be able to sell it for LEE, OOD . Instructions [a ] Determine any gain or loss if the ad Equipment is replaced . |6; Prepare a 4- year summarized income statement for each of the following assumptions : 141 The old equipment is retained. 121 The old Equipment is replaced . [a] LIEing incremental analysis , determine if the old Equipment should be replaced .( a ) - Show your calculations below . Book Value \\16 - 71 4 year Income Statement Retain Old Equipment REVENUES GOD, OOD * 4 WEE ] 1, 4 40,000 LESS Costs . Net Income|42- 21 4 year Income Statement Replace Old Equipment REVENUES ( SOD, OOD * 4 VIE ! 1, 4 40, 000 LESS Costs . Operating ( net ) Income Net Income Net Income Incremental Analysts Retain Old Replace Old Equipment Equipment Increase Of |Decrease) Totals