Starling co. is considering disposing of a machine with a book value of $12,500 and estimated remaining life of five years. the old machine can be sold for $1,500. a new high-speed machine can be purchased at a cost of $25,000. it will have a useful life of five years and no residual value. it is estimated that the annual variable manufacturing costs will be reduced from $26,000 to $23,500 if the new machine is purchased. the total net differential increase or decrease in cost for the new equipment for the entire five years is

Tri fecta, a partnership, had revenues of $369,000 in its first year of operations. the partnership has not collected on $45,000 of its sales and still owes $39,500 on $155,000 of merchandise it purchased. there was no inventory on hand at the end of the year. the partnership paid $27,000 in salaries. the partners invested $48,000 in the business and $23,000 was borrowed on a five-year note. the partnership paid $2,070 in interest that was the amount owed for the year and paid $9,500 for a two-year insurance policy on the first day of business. compute net income for the first year for tri fecta.