Prepare an incremental analysis of Wildhorse 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 eg.-45 or parentheses eg. (45)) Annual operating costs $ New scanner cost Old scanner salvage Total Retain Scanner Replace Scanner Should Wildhorse Hospital purchase the new scanner on January 2, 20227 Net Income Increase (Decrease)
Prepare an incremental analysis of Wildhorse 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 eg.-45 or parentheses eg. (45)) Annual operating costs $ New scanner cost Old scanner salvage Total Retain Scanner Replace Scanner Should Wildhorse Hospital purchase the new scanner on January 2, 20227 Net Income Increase (Decrease)
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 15PB: Urquhart Global purchases a building to house its administrative offices for $500,000. The best...
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Transcribed Image Text:Prepare an incremental analysis of Wildhorse 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 eg.-45 or parentheses eg. (45).)
Annual operating costs $
New scanner cost
Old scanner salvage
Total
$
Retain
Scanner
$
$
Replace
Scanner
Should Wildhorse Hospital purchase the new scanner on January 2, 20227
Net Income
Increase
(Decrease)
Transcribed Image Text:On January 2, 2021, Wildhorse Hospital purchased a $92,000 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 $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 Bella Inc. was a mistake. He points out that Dyno has a scanner that will save Wildhorse Hospital
$25,000 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 Wildhorse Hospital for $40,000.
(a)
Your answer is correct.
If Wildhorse Hospital sells its old scanner on January 2, 2022, compute the gain or loss on the sale.
Loss on sale
$
aboratoard Madis
29000
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