Problem 20-4A (Part Level Submission) Last year (2016), Richter 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 $90,000 New Elevator $161,000 5 years Straight-line 4 years Straight-line Purchase price Estimated salvage value Estimated useful life Depreciation method Annual operating costs other than depreciation: Variable Fixed $35,300 24,000 $10,000 8,300 Annual revenues are $241,000, and selling and administrative expenses are $28,000, regardless of which elevator is used. If the old elevator is replaced now, at the beginning of 2017, Richter Condos will be able to sell it for $26,000 Determin a r loss the oldevator replaced e for each of the following suction Prepare a summaric (1) The old devetoris retained Retain Old Elevator Depreciation Nene Replace Old Elevator Variable cout Selling strative Depreciation Les Losan to Netcome Ung incremental analysis, determine the should be replaced negativam a Retai Old Flevator Replace Old Elevator Net Income Increase (Decrease) Varer educt New Oro Cylike the work for this t o