Granfield company has a piece of manufacturing equipment with a book value of $44,000 and a remaining useful life of four years. at the end of the four years the equipment will have a zero salvage value. the market value of the equipment is currently $22,800. granfield can purchase a new machine for $128,000 and receive $22,800 in return for trading in its old machine. the new machine will reduce variable manufacturing costs by $19,800 per year over the four-year life of the new machine. the total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:

$26,000 increase

$79,200 decrease

$21,200 decrease

$54,800 increase

$26,000 decrease