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iPad 8:37 PM 100%-. edugen.wileyplus.com WileyPLUS WileyPLUS My ASU 6:19 PM 100%- Edugen." 2e 112) Home Read, Study & Practice Assignment Gradebook ORION Downloadable eTextbook Assignment>Open Assignmen FULL SCREEN PRINTER VERSION ASSIGNMENT RESOURCES Exercise 21-13 On January 2, 2016, Twilight Hospital purchased a $103,200 special radiology scanner from Bella Inc. The scanner had a useful life of 4 years and was estimated to 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 xercise 21 Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that purchasing the scanner in 2016 from Bella Inc. was a mistake. He points out that Dyno has a scanner that will save Twilight Hospital $24,000 a year in operating expenses over its 3-year useful life. Jacob notes that the new scanner will cost $110,000 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. Jacob agrees to buy the old scanner from Twilight Hospital for $57,000 Review Scor Review Results by Study Objective Your answer is incorrect. Try again. If Twilight Hospital sells its old scanner on January 2, 2017, compute the gain or loss on the sale. Loss on sale 46200 Your answer is partially correct. Try again Prepare an incremental analysis of Twilight Hospital. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the third column, enter net income increases as positive amounts and decreases as negative amounts. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Retain Scanner Replace Scanner Net Income Increase (Decrease) Annual operating costs 420000 348000 72000 New scanner cost 110000 110000 Old scanner salvage 57000 57000 Total 420000 401000 125000 Should Twilight Hospital purchase the new scanner on January 2, 2017? Yes Question Attempts: 1 of 2 used SAVE FOR LATER SUBMIT ANSWERExplanation / Answer
Req A: Loss on sale of Old Scanner: Original cost of Scanner 103200 Salvage value 0 Life 4 Annual Depreciation 25800 Book value of Scanner in Beg. 2017 77400 Less: Disposal value 57000 Loss on Exchange of Scanner 20400 Req B: INCREMENTAL ANALYSIS: RETAIN REPLACE NET INCOME INCREASE/DECREASE) Annual Operating Income 315000 243000 72000 New Scanner Cost 0 110000 -110000 Old Scanner Salvage 0 -57000 57000 Total 315000 296000 19000 Yes Twilight should purchased the new scanner
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