Pl

ease help with part b2. The old elevator is replaced.

At the beginning of last year (2021), Richter Condos installed a mechanized elevator for its tenants. The owner of Richter, recently returned from an industry equipment exhibition where he watched a computerized elevator der impressed with the elevator's speed, comfort of ride, and cost efficiency. Upon returning from the exhibition, he a- agent to collect price and operating cost data on the new elevator. In addition, he asked the company's accountant cost data on the company's elevator. This information is presented here. Old Elevator New Elevator Purchase price $98,500 $159,000 Estimated salvage value 0 Estimated useful life 5 years 4 years Depreciation method Straight-line Straight-line Annual operating costs other than depreciation: Variable $34,400 $11,000 Fixed 22.400 8,600 Annual revenues are $240,000, and selling and administrative expenses are $28,000. regardless of which elevator is elevator is replaced now, at the beginning of 2022, Richter Condos will be able to sell it for $24,700. At the beginning of last year (2021), 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 here. Old Elevator New Elevator Purchase price $98,500 $159,000 Estimated salvage value 0 0 Estimated useful life 5 years 4 years Depreciation method Straight-line Straight-line Annual operating costs other than depreciation: Variable $34,400 $11,000 Fixed 22,400 8,600 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 2022, Richter Condos will be able to sell it for $24.700. (2) The old elevator is replaced. Replace Old Elevator Revenues Less costs: Variable costs $ 44,000 Fixed costs 34.400 Selling & administrative 159.000 Depreciation -24.700 212.700 Operating income Less: Loss on old elevator Net income 14,500 e Textbook and Media 6.77 / 13 VII (1) The old elevator is retained. Retain Old Elevator Revenues 960,000 Less costs: Variable costs 137,600 Fixed costs 89,600 1 Selling & administrative 112,000 1 Depreciation 78,800 418.000 WWWW Net income $ 542 000 (2) The old elevator is replaced. Replace Old Elevator Revenues Annual revenues are $240,000, and selling and administrative expenses are $28,000, regardless of which elevator is used. If elevator is replaced now, at the beginning of 2022, Richter Condos will be able to sell it for $24,700. (a) Your answer is correct. Determine any gain or loss if the old elevator is replaced. Loss on sale $ 54,100 e Textbook and Media Attempts: 2 of 5 u