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On January 2, 2021, Waterway Hospital purchased a $96,000 special radiology scanner from Cinrich Inc. The scanner has a useful life of five years
On January 2, 2021, Waterway Hospital purchased a $96,000 special radiology scanner from Cinrich Inc. The scanner has a useful life of five years and will 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 $105,200. Approximately one year later, the hospital is approached by Blue Spruce Technology salesperson Karen White, who indicates that purchasing the scanner in 2021 from Cinrich was a mistake. She points out that Blue Spruce has a scanner that will save Waterway Hospital $26,300 a year in operating expenses over its four-year useful life. She notes that the new scanner will cost $119,200 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. Blue Spruce agrees to buy the old scanner from Waterway Hospital for $59,200. Your answer is partially correct. Assume Waterway Hospital sells its old scanner on January 2, 2022. Calculate the gain or loss on the sale. If Waterway Hospital sells its old scanner it incurs a loss of $ eTextbook and Media 142,000
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