On January 2, 2021, Twilight Hospital purchased a $98,400 special radiology scanner from Crane 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 $106,000. Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that purchasing the scanner in 2021 from Crane 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 $111,000 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 $45,000. (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. (b) Loss on sale $ eTextbook and Media Save for Later Last saved 1 second ago. Attempts: 2 of 3 used Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above.
On January 2, 2021, Twilight Hospital purchased a $98,400 special radiology scanner from Crane 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 $106,000. Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that purchasing the scanner in 2021 from Crane 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 $111,000 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 $45,000. (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. (b) Loss on sale $ eTextbook and Media Save for Later Last saved 1 second ago. Attempts: 2 of 3 used Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:On January 2, 2021, Twilight Hospital purchased a $98,400 special radiology scanner from Crane 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 $106,000.
Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that
purchasing the scanner in 2021 from Crane 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 $111,000 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 $45,000.
(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.
(b)
Loss on sale
$
eTextbook and Media
Save for Later Last saved 1 second ago.
Attempts: 2 of 3 used
Submit Answer
The parts of this question must be completed in order. This part will be available when you complete the part above.
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