On January $2,2021,$ Twilight Hospital purchased a $$104,400$ special radiology scanner from Sheridan Inc. The scanner had a useful life

of $4$ years and was estimated to have no disposal value at the end of its useful life. The straight$-$line method of depreciation is used on

this scanner. Annual operating costs with this scanner are $$106,000.$

Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that

purchasing the scanner in $2021$ from Sheridan 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 Hospital for $$55,500$