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Bullwinkle Company owns equipment with a cost of $363,800 and accumulated depreciation of $55,500 that can be sold for $277,200, less a 5% sales commission.
Bullwinkle Company owns equipment with a cost of $363,800 and accumulated depreciation of $55,500 that can be sold for $277,200, less a 5% sales commission. Alternatively, Bullwinkle Company can lease the equipment for 3 years for a total of $284,700, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Bullwinkle Company on the equipment would total $15,700 over the 3-year lease. a. Prepare a differential analysis on October 29 as to whether Bullwinkle Company should lease (Alternative 1) or sell (Alternative 2 ) the equipment. If required, use a minus sign to indicate a loss. b. Should Bullwinkle Company lease (Alternative 1) or sell (Alternative 2) the equipment
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