7 = 22,000 x 3 years] = 94,000 (book value) – $42,000 (fair market value) = $52,000 loss on disposal of old machine.

7 = 22,000 x 3 years] = 94,000 (book value) – $42,000 (fair market value) = $52,000 loss on disposal of old machine. Your supervisor”s goal is to maximize 2004 income since her bonus is based on the company”s profitability. Based upon this analysis and her desires, what is your recommendation?