At the beginning of last year $(2026),$ Richter Condos installed a mechanized elevator for its tenants. The owner of the company, Mark

Richter, 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 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

cost data on the company's elevator. This information is presented below.

Annual revenues are $$241,000,$ and selling and administrative expenses are $$28,000,$ regardless of which elevator is used. If the old

elevator is replaced now, at the beginning of $2022,$ Richter Condos will be able to sell it for $$25,600.$

$($a$)$

Correct Answer

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