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Assume that Win Co. is considering disposing of equipment that cost $69,362.00 and has $48,553.40 of accumulated depreciation to date. Win Co. can sell the
Assume that Win Co. is considering disposing of equipment that cost $69,362.00 and has $48,553.40 of accumulated depreciation to date. Win Co. can sell the equipment through a broker for $33,928.00 less 9% commission. Alternatively, But Co. has offered to lease the equipment for five years for a total of $47,003.00. Win will incur repair, insurance, and property tax expenses estimated at $10,954.00. At lease-end, the equipment is expected to have no residual value. Determine the net differential income from the lease alternative.
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