Question

CALCULATOR PRINTER VERSION BACK NEXT Exercise 20-13 (Part Level Submission) On January 2, 2016, Twilight Hospital purchased a $99,200 special radiology scanner from Bella Inc. The scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life. The straight-line method of depreciation is used on this scanner, Annual operating costs with this scanner are $104,000. Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that purchasing the scanner in 2016 from Bella Inc. was a mistake. He points out that Dyno has a scanner that will save Twilight Hospital $25,000 a year in operating expenses over its 3-year useful life. Jacob notes that the new scanner will cost $111,000 and has the same capabilities as the scanner purchased last year. The hospital agrees that both scanners are of equal quality. The new scanner will have no disposal value. Jacob agrees to buy the old scanner from Twilight Hospital for $49,000. (a) If Twilight Hospital sells its old scanner on January 2, 2017, compute the gain or loss on the sale. Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT

Answer 1

Inswer: - Sules paoceeds (A) = 49000 Purchase price = 99200 Now, Depreciation - 99200 - 24800 We fecell life of WDW=CB) - scaner 99200 - 24800 3 74400 Now, we know that Loss on sales - A-B - 49000 - 74400 ce Loss on sale's = -95400 104000 x 3 = 319000 25000 x 3,5 75000 3 years usefuell life

INet income Relain scannen Replace Scanner / herease Codec Annual operating cost 319000 75000 237000 New Scanner Cost 111000 - 111000 Old scanner cost -49000 49000 Total 312000 | 137000 175000 312000 - 75000 - 237000 new Scanneft will cost - 11000 Jacob agrees to by buy the old scanner hoipital for 49000 forom turlight 48. purchased the new Scanner.