3.48 / 15 Question 4 of 5 Current Attempt in Progress Last year (2016), Blue Condos installed a mechanized elevator for its tenants. The owner of the company, Ron Richter, recently returned from an industry equipment exhibition where he watched a computerized elevator demonstrated. He was impressed wi the elevator's speed, comfort of ride, and cost efficiency. Upon returning from the exhibition, he asked his purchasing agent to collect price and operating cost data on the new elevator. In addition, he asked the company's accountant to provide him with cos data on the company's elevator. This information is presented below. Old Elevator $102,500 0 5 years Straight-line Purchase price Estimated salvage value Estimated useful life Depreciation method Annual operating costs other than depreciation: Variable Fixed New Elevator $159,000 0 4 years Straight-line $34,000 23,400 $9.000 8,000 Annual revenues are $240,000, and selling and administrative expenses are $28,000. regardless of which elevator is used. If the elevator is replaced now, at the beginning of 2017, Blue Condos will be able to sell it for $25.100. Your answer is partially correct. Your answer is partially correct. Determine any gain or loss if the old elevator is replaced. Loss on sale $ e Textbook and Media - Your answer is partially correct. Prepare a 4-year summarized income statement for each oft (1) The old elevator is retained. Revenues Lacernot cion 4 of 5 Your answer is partially correct. epare a 4-year summarized income statement for each of the following assumptions: The old elevator is retained. Retain Old Elevator Revenues $ 964000 Less costs: Variable costs $ 140400.00 Fixed costs 95200 Selling & administrative 116000 Depreciation 84000 435600 Net income $ 528400 2) The old elevator is replaced. DOLL wiley.com/was/ui/2/assessment-player/index.html?launchid=372bf13a-9a7a-491c-b6a3-af75b754cc6d#/questi Ch 12 uestion 4 of 5 (2) The old elevator is replaced Replace Old Elevator Revenues 964000 Less costs: Variable costs 44000 Fixed costs 32000 i Selling & administrative 116000 Depreciation 160000 352000 Operating income 612000 Less: Loss on old elevator -59500 Net income $ 552500 e Textbook and Media 1 Youmans O REW DLL Using incremental analysis, determine if the old elevator should be replaced. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g.(45).) Retain Old Elevator Replace Old Elevator Net Income Increase (Decrease) 140400.00 $ Variable operating costs Fixed operating costs 95200.00 New elevator cost i Salvage on old elevator Totals $ $ 3.48 / 15 Question 4 of 5 Current Attempt in Progress Last year (2016), Blue Condos installed a mechanized elevator for its tenants. The owner of the company, Ron Richter, recently returned from an industry equipment exhibition where he watched a computerized elevator demonstrated. He was impressed wi the elevator's speed, comfort of ride, and cost efficiency. Upon returning from the exhibition, he asked his purchasing agent to collect price and operating cost data on the new elevator. In addition, he asked the company's accountant to provide him with cos data on the company's elevator. This information is presented below. Old Elevator $102,500 0 5 years Straight-line Purchase price Estimated salvage value Estimated useful life Depreciation method Annual operating costs other than depreciation: Variable Fixed New Elevator $159,000 0 4 years Straight-line $34,000 23,400 $9.000 8,000 Annual revenues are $240,000, and selling and administrative expenses are $28,000. regardless of which elevator is used. If the elevator is replaced now, at the beginning of 2017, Blue Condos will be able to sell it for $25.100. Your answer is partially correct. Your answer is partially correct. Determine any gain or loss if the old elevator is replaced. Loss on sale $ e Textbook and Media - Your answer is partially correct. Prepare a 4-year summarized income statement for each oft (1) The old elevator is retained. Revenues Lacernot cion 4 of 5 Your answer is partially correct. epare a 4-year summarized income statement for each of the following assumptions: The old elevator is retained. Retain Old Elevator Revenues $ 964000 Less costs: Variable costs $ 140400.00 Fixed costs 95200 Selling & administrative 116000 Depreciation 84000 435600 Net income $ 528400 2) The old elevator is replaced. DOLL wiley.com/was/ui/2/assessment-player/index.html?launchid=372bf13a-9a7a-491c-b6a3-af75b754cc6d#/questi Ch 12 uestion 4 of 5 (2) The old elevator is replaced Replace Old Elevator Revenues 964000 Less costs: Variable costs 44000 Fixed costs 32000 i Selling & administrative 116000 Depreciation 160000 352000 Operating income 612000 Less: Loss on old elevator -59500 Net income $ 552500 e Textbook and Media 1 Youmans O REW DLL Using incremental analysis, determine if the old elevator should be replaced. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g.(45).) Retain Old Elevator Replace Old Elevator Net Income Increase (Decrease) 140400.00 $ Variable operating costs Fixed operating costs 95200.00 New elevator cost i Salvage on old elevator Totals $ $