Problem 12-4 (Part Level Submission) Last year (2016), Martinez Condos installed a mechanized elevator for its tenants. The owner of the company, Ron Richter, recently returned from an industry equipment exhibition where he watche a computerized elevator dermonstrated. He was pressed with the elevator's speed, comfort of nde, and cost emiciency. Upon retur ng hom the exhibition, he sked hi, purchasing agent to collect price and operating cost data on the new elevator. In acdition, he asked the company's accountant to provide him with cost data on the company's elevator. This information is presented below New Elevator Old Elevator Purchase price Estimated salvage value Estimated useful life Depreciation method Annual operating costs $98,500 $159,000 years Straight-ine Straight-line 5 years other than depreciation: Variable $11,000 8,600 34,400 22,400 Fixed Annual revenues are $240,000, and selling and administrative expenses are $28,000, regardless of which eevator is used. If the old elevator is replaced now, at the beginning of 2017, Martiner Condos will be able to sell it for $24,700. D) Prepare a 4-year summarized income statement for each of the following assumptions: (1) The old elevator is retained. Retain Old Elevator Revenues Less costs: Variable costs Fixed costs Selling & administrative Depreciation Net income (2) The old elevator is replaced. Replace Old Elevator Revenues Less costs: Variable costs Fixed costs Replace Old Elevator Revenues Less costs: Variable costs Fixed costs Selling & administrative Depreciation Operating income Less: Loss on old elevator Net income Click if you would like to Show Work for this question: Open Show Work