Last year, Tamarisk Condos installed a mechanized elevator for its tenants. The owner $of$ the company, Thomas Taylor, recently

returned from $an$ industry equipment exhibition where $he$ watched a computerized elevator demonstrated. $He$ was impressed with

the elevator's speed, comfortable 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 existing elevator. The information $is$ presented below:

Annual revenues are $$240,100$ and selling and administrative expenses are $$28,500,$ regardless $of$ which elevator $is$ used. $Ifit$ replaces

the old elevator now, $at$ the beginning $of2022,$ Tamarisk Condos will $be$ able $to$ sell $it$ for $$24,000.$ Last year, Tamarisk Condos installed a mechanized elevator for its tenants. The owner $of$ the company, Thomas Taylor, recently

returned from $an$ industry equipment exhibition where $he$ watched a computerized elevator demonstrated. $He$ was impressed with

the elevator's speed, comfortable ride, and cost efficiency. Upon returning from the exhibition, $he$ asked his $pu$ Prepare $a5-$year summarized income statement for each $of$ the following assumptions:

$(1)$ The old elevator $is$ kept.

Sales

Less costs:

Variable operating costs

$

Fixed operating costs

Selling and administrative

Depreciation

Net income

$$(2)$ The old elevator $is$ replaced.

Sales

$

Less costs:

Variable operating costs $

Fixed operating costs

Selling and administrative

Depreciation

Operating income

Less: Loss $on$ old elevator

Net income

$