Use incremental analysis for retaining or replacing equipment decision (LO 5), E Service On January 2, 2019, Assisi Hospital purchased a 100,000 special radiology Zwer from Bella SpA. The scanner had a useful life of 4 years and was estimated to have no residual e at the end of its useful life. The straight-line method of depreciation is used on this scanner. Annual rating costs with this scanner are 105.000 Approximately one year later, the hospital is approached by Dyno Technology salesperson, Anthony i who indicated that purchasing the scanner in 2019 from Bella SpA was a mistake. He points out Dyno has a scanner that will save Assisi Hospital 25,000 a year in operating expenses over its ar useful life. Anthony notes that the new scanner will cost 110,000 and has the same capabilities the scanner purchased last year. The hospital agrees that both scanners are of equal quality. The new manner will have no disposal value. Anthony agrees to buy the old scanner from Assisi Hospital for 50,000 Instructions If Assisi Hospital sells its old scanner on January 2. 2020, compute the gain or loss on the sale. b. Using incremental analysis, determine if Assisi Hospital should purchase the new scanner on January 2, 2020. Explain why Assisi Hospital might be reluctant to purchase the new scanner, regardless of the results indicated by the incremental analysis in (b)