On January 2, 2019, TwilightHospital purchased a $104,800 special radiology scannerfrom Bella Inc. The scanner had a useful life of 4 years andwas estimated to have no disposal value at the end of itsusefule. The straight line method of depreciation is used onthis scanner. Annual operating costs with this scanner are$105,000 Approximately one year later, the hospital isapproached by Dyno Technology salesperson, Jacob Cullen,who indicated that purchasing the scanner in 2019 from BellaInc. was a mistake. He points out that Dyno has a scannerthat will save Twilight Hospital $26,000 a year in operatingexpenses over its 3-year useful life. Jacob notes that the newscanner will cost $109,000 and has the same capabilities asthe scanner purchased last year. The hospital agrees that bothscanners are of equal quality.
