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 $161,000 0 0 Purchase price Estimated salvage value Estimated useful life Depreciation method Annual operating costs other than depreciation: Variable 5 years Straight-line 4 years Straight-line $9,000 $34,500 22,000 Fixed 8,900 Annual revenues are $240,000, 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 2020, Richter Condos will be able to sell it for $24,200. (a) Your answer is correct. Determine any gain or loss if the old elevator is replaced. Loss on sale $ 59800 i 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 Selling & administrative Depreciation Operating income Loss on old elevator Net income $