Need some help with the last question, thanks!

At the beginning of last year (2021), Richter Condos installed a mechanized elevator for its tenants. The owner of the company, Matthew 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 New Elevator Purchase price $102,500 $159,000 Estimated salvage value 0 Estimated useful life 5 years 4 years Depreciation method Straight-line Straight-line Annual operating costs other than depreciation: Variable $34,000 $9,000 Fixed 23,400 8,000 Annual revenues are $240,000, 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 $25,100. (a) V Your answer is correct. Determine any gain or loss if the old elevator is replaced. Loss on sale $ 56900 iPrepare a 4year summarized income statement for each of the following assumptions: [1] The old elevator is retained. Revenues Less costs: Variable costs 33 Fixed costs Selling 8: administrative Depreciation 136000 112000 82000 :H :I :H Retain 0ch Elevator 960000 {:9- 423600 i Net income [2] The old elevator is replaced. Revenues Less costs: Variable costs $- Fixed costs Selling 8; administrative Depreciation Operating income Loss on old elevator Net income 36000 112000 159000 :I j! :E :E 536400 ER Replace Old Elevator 960000 69- {339000} i 621000 [56900] i 564100 a 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 e.g. -15 or parentheses e.g. (15).) Net Income Retain Replace Increase Old Elevator Old Elevator (Decrease) Variable operating costs $ $ $ Fixed operating costs New elevator cost Salvage on old elevator Totals $ $ $ The old elevator v be replaced