Please assist.

Last year (2016), Pronghorn Condos installed a mechanized elevator for its tenants. The owner of the company, Ron 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 (2) The old elevator is replaced. company's accountant to provide him with cost data on the company's elevator. This information is presented below. Replace Old Elevator Old Elevator New Elevator Revenues Purchase price $104,500 $161,000 Estimated salvage value O H Less costs: Estimated useful life 5 years 4 years Variable costs Depreciation method Straight-line Straight-line Annual operating costs Fixed costs other than depreciation: Variable $35,600 $11,000 Selling & administrative Fixed 23,200 9,000 Depreciation Annual revenues are $239,000, and selling and administrative expenses are $29,000, regardless of Operating income LL which elevator is used. If the old elevator is replaced now, at the beginning of 2017, Pronghorn Condos will be able to sell it for $24,700. Less: Loss on old elevator Determine any gain or loss if the old elevator is replaced. Net income LINK TO TEXT LINK TO TEXT Using incremental analysis, determine if the old elevator should be replaced. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Prepare a 4-year summarized income statement for each of the following assumptions: Net Income (1) The old elevator is retained. Retain Replace Increase Old Elevator Old Elevator ( Decrease) Retain Old Elevator Variable operating costs Revenues Fixed operating costs Less costs: New elevator cost Variable costs Salvage on old elevator Fixed costs Totals Selling & administrative Depreciation (Ctrl) - Net income