Problem 12-4 (Part Level Submission) Last year (2016), Martinez 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. New Elevator $159,000 Old ElevatorE $98,500 Purchase price Estimated salvage value Estimated useful life Depreciation method Annual operating costs years 4 years other than depreciation: Variable Fixed 34,400 22,400 $11,000 ,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 2017, Martinez Your answer is incorrect. Try again. Prepare a 4-year summarized income statement for each of the following assumptions: (1) The old elevator is retained. Retain Old Elevator Revenues 240000 Less costs: Variable costs 34400 Fixed costs 24400 Selling & administrative 28000 Depreciation 98000 19700 Net income 135500 (2) The old elevator is replaced. Replace Old Elevator (2) The old elevator is replaced. Replace Old Elevator Revenues Less costs: Variable costs Fixed costs Selling & administrative Depreciation Operating income Less: Loss on old elevator Net income Click if you would like to Show Work for this question: Open Show Work