Problem 12-4 Last year (2016), Blue 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 company's accountant to provide him with cost data on the company's elevator. This information is presented below. Old Elevator $105,000 New Elevator $160,000 Purchase price Estimated salvage value 0 Estimated useful life 5 years 4 years Straight-line Straight-line Depreciation method Annual operating costs other than depreciation: Variable $35,100 23,800 $11,000 8,000 Fixed Annual revenues are $241,000, and selling and administrative expenses are $29,000, regardless of which elevator is used. If the old elevator is replaced now, at the beginning of 2017, Blue Condos will be able to sell it for $24,500. Your answer is partially correct. Try again. Determine any gain or loss if the old elevator is replaced. TLoss on sale Tuoss on sale w O Your answer is partially correct. Try again. Prepare a 4-year summarized income statement for each of the following assumptions: (1) The old elevator is retained. Retain Old Elevator Revenues 964000 Less costs: Variable costs T 140400 Fixed costs Selling & administrative 16000 X Depreciation 84000 Net income