At the beginning of last year $(2019),$ Cullumber Condos installed a mechanized elevator for its tenants. The owner of the comparys.

Ron Cullumber, recently returned from an industry equipment exhibition where he watched a computerized elevator demonstrated

He was impressed with the elevator's speed, comfort of ride, and cost efficiency. Upon returning from the exhibition, he ashed his

purchasing agent to collect price and aperating cost data on the new elevator. In addition, he asked the company's accountant to

provide him with cost data on the compary's elevator. This information is presented below.

Anrual revenues are $$241,000,$ and selling and administrative expenses are $$30,000,$ regardless of which elevator is used. If the old

elevator is replaced now, at the beginning of $2020.$ Cullumber Condos will be able to sell it for $$25,900.$

$($a$)$

Correct Answer

Your answer is correct

Determine ary gain or loss if the old elevator is replaced.

$4$

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Solution

Attempts: $1$ of $1$ used

$($b$)$

Prepare a $4-$year summarized income statement for each of the following assumptions:

$(1)$ The old elevator is retained.

$(2)$ The old elevator is replaced.