Ch20 Q9 B

OM 2012. Twilight Hospital purchased a $106.000 special radiology scanner from Bella in the scanner had a useful life en and was estimated to have no disposal value at the end or is useful lite. The straight line method of depreciation is used on the Annual operating costs with this scanner are 104.000. Aposmately one year later the hospital is approached by Dyno Technology salesperson Jacob Cullen, who indicated that purchasing the scanner in 2019 from Bella Inc. was a mistake. He points out that Dyno has scanner that will save Twilight Hospital 525.000 year in operating expenses over its 3-year useful life: Jacob notes that the new scanner will cost $110.000 and has the same capabilities as the scanner purchased last year. The hospital agrees that both scanners are of equal quality. Thenewscanner will have no disposal value. Jacob agrees to buy the old scanner from Twilight Hospital for $57.500, Your answer is correct Twilight Hospital sells its old scanner on January 2, 2020 compute the gain or loss on the sale Dose V 22000 Your answer is partially correct. Prepare an incremental analysis of Twilight Hospital. (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 eg.-45 or parentheses eg.(45)) Retain Scanner Replace Scanner Net Income Increase (Decrease) Annual operating costs $ New scanner cost Old scanner salvage $ Total