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hello and welcome to another tlc tutoring company accounting lesson today we will be going over a differential analysis as it relates to replacing equipment again for these type of differential analysis questions we are not going to be using a full table like what might be seen in some textbooks we are simply going to be analyzing this from an accounting standpoint so here we have schneider incorporated that has a piece of equipment that originally cost uh one hundred thousand dollars this piece of equipment also has accumulated depreciation of thirty thousand dollars so the a hundred thousand dollars and the thirty thousand dollars that is not going to be relevant to us what we care about is is the new equipment that we are going to replace it with is that replacement going to cost or actually going to save us money so lets take a look uh we see here that the company is considering selling their old equipment for sixty thousand dollars and replacing it with a new piece of equipment f