At the beginning of last year (2021), Richter 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 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 here. Old Elevator $98,500 New Elevator $159.000 0 0 Purchase price Estimated salvage value Estimated useful life Depreciation method Annual operating costs 5 years 4 years Straight-line Straight-line other than depreciation: Variable $35,300 $10,000 Fixed 24,000 8.900 Annual revenues are $239,000, and selling and administrative expenses are $29.000, 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 $25.700, leveles de 5239,000, and selling and administrative expenses are $29,000. 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 $25,700. (a) Determine any gain or loss if the old elevator is replaced. $ eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer (b) ) (b) Prepare a 4-year summarized income statement for each of the following assumptions (1) The old elevator is retained Retain Old Elevator Revenues $ Less costs: Variable costs Fixed costs Selling & administrative Depreciation Net income 2. The old hvor replaced Replace on the Revenues esco Variable con U Fixed costs Selling administrative Deprecation Operating come Less Loon old clear Net income e Textbook and Media Using incremental analysis, determine if the old elevator should be replaced. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the third column, enter net income increases as positive amounts and decreases as negative amounts. Enter negative amounts using either a negative sign preceding the number 4.3.-15 or parentheses es. (151) Retain Old Elevator Replace Old Elevator Net Income Increase (Decrease] Variable operating costs $ Fixed operating costs New elevator cost Salvage on old elevator Totals The old elevator be replaced e Textbook and Media