On January 2, 2021, Twilight Hospital purchased a $92,000 special radiology scanner from Sandhill Inc. The scanner ha of 4 years and was estimated to have no disposal value at the end of its useful life. The straight-line method of deprecia this scanner. Annual operating costs with this scanner are $105,000. Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated purchasing the scanner in 2021 from Sandhill Inc. was a mistake. He points out that Dyno has a scanner that will save T $26,000 a year in operating expenses over its 3-year useful life. Jacob notes that the new scanner will cost $110,000 ar
On January 2, 2021, Twilight Hospital purchased a $92,000 special radiology scanner from Sandhill Inc. The scanner ha of 4 years and was estimated to have no disposal value at the end of its useful life. The straight-line method of deprecia this scanner. Annual operating costs with this scanner are $105,000. Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated purchasing the scanner in 2021 from Sandhill Inc. was a mistake. He points out that Dyno has a scanner that will save T $26,000 a year in operating expenses over its 3-year useful life. Jacob notes that the new scanner will cost $110,000 ar
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vikram
Transcribed Image Text:On January 2, 2021, Twilight Hospital purchased a $92,000 special radiology scanner from Sandhill 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.
Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that
purchasing the scanner in 2021 from Sandhill Inc. was a mistake. He points out that Dyno has a scanner that will save Twilight Hospital
$26,000 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 $37,000.
(a)
- Your answer is partially correct.
If Twilight Hospital sells its old scanner on January 2, 2022, compute the gain or loss on the sale.
Loss on sale
$
26000
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