At the beginning of last year (2021), Richter Condos installed a mechanized elevator for its tenants. The owner of the company, Steven 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. Old Elevator $ 95,000 New Elevator $ 159,000 0 0 Purchase price Estimated salvage value Estimated useful life Depreciation method Annual operating costs other than depreciation: Variable Fixed 5 years Straight-line 4 years Straight line $ 35,400 $10,000 22.400 8,000 Annual revenues are $ 240,000, 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 $ 25,800. Your answer is partially correct. Try again. Prepare a 4-year summarized income statement for each of the following assumptions: (1) The old elevator is retained. Retain Old Elevator Sales Less costs: Variable costs Fixed costs Selling & administrative Depreciation Net income (2) The old elevator is replaced Replace on Elevator Sales Less costs Variable costs Fixed costs Selling & administrative Depreciation Operating income Less: Loss on old elevator Net income Click if you would like to show Work for this question: Open Show Work