On January 2, 2019, Bramble Hospital purchased a $103,200 special radiology scanner from Bella 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 $105,000. Approximately 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 a scanner that will save Bramble Hospital $24,000 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 Bramble Hospital for $57,000.

	Your answer is correct.

If Bramble Hospital sells its old scanner on January 2, 2020, compute the gain or loss on the sale.

Gain on saleLoss on sale

$

Your answer is partially correct. Try again. Prepare an incremental analysis of Bramble Hospital. (In the first two columns, enter amounts. In the third column, enter net income increases as positive amounts a sign preceding the number e.g. -45 or parentheses e.g. (45).) Retain Scanner Replace Scanner Net Income Increase (Decrease) Annual operating costs -72,000 72,000 New scanner cost 110.000 - 110,000 Old scanner salvage -57,000 57,000 Tatal - 19,000 19,000 Should Bramble Hospital purchase the new Scanner on January 2, 2020? Yes