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On January $2,2021,$ Whispering Winds Hospital purchased a $$107,500$ special radiology scanner from Paver Inc. The scanner has a

useful life of five years and will 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 $$105,000.$

Approximately one year later, the hospital is approached by Bramble Technology salesperson Elizabeth Brown, who indicates that

purchasing the scanner in $2021$ from Paver was a mistake. She points out that Bramble has a scanner that will save Whispering Winds

Hospital $$27,000$ a year in operating expenses over its four$-$year useful life. She notes that the new scanner will cost $$119,200$ 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. Bramble agrees to buy the old scanner from Whispering Winds Hospital for $$56,300.$

$($a$)$

Assume Whispering Winds Hospital sells its old scanner on January $2,2022.$ Calculate the gain or loss on the sale.

If Whispering Winds Hospital sells its old scanner it incurs

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$($b$)$

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