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Astro Company owns equipment with a cost of $364,000 and accumulated depreciation of $55,100 that can be sold for $275,900, less a 4% sales commission.
Astro Company owns equipment with a cost of $364,000 and accumulated depreciation of $55,100 that can be sold for $275,900, less a 4% sales commission. Alternatively, Astro Company can lease the equipment for three years for a total of $288,500, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Astro Company on the equipment would total $16,600 over the three year lease. indicate a loss. a. Prepare a differential analysis on August 7 as to whether Astro Company should lease Alternative 1) or sell (Alternative 2) the equipment. If required, use a minus sign Differential Analysis Lease Equipment (Alt. 1) or Sell Equipment (Alt. 2) August 7 Lease Sell Differential Equipment Equipment Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs Profit (Loss)
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