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E7.13 (LO 5), E Service On January 2, 2021, Twilight Hospital purchased a $100,000 special radiology scanner from Bella Inc. The scanner had a nseful

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E7.13 (LO 5), E Service On January 2, 2021, Twilight Hospital purchased a \$100,000 special radiology scanner from Bella Inc. The scanner had a nseful life of 4 years and was estimated to have no dispocal value at the end of ils usefilt life. The straight-line method of depreciation is used on this scanner. Anual operating costs with this scanner are $105,000. Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that purchasing the scanner in 2021 from Bella Inc, was a mistake He points out that Dyno has a scanner that will save Twilight Hospital $25,000 a 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. The new scanner will have no disposal value Jacob agrees to buy the old scanner from Twilight Hoopital for $50,000. Instructions a. If Twilight Hoppital sells its old scauner ou January2, 2022, compute the gain or loss on the sale b. Unigg incremental analysis, determine if Twilight Hospital should purchase the new seatuer on January 2, 2022. c. Explain why Twilight Hospital might be relactant to purchase the new scanne, regardless of the results indicated by the incremental amalysis in (b)

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