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can i get some help heres a morw clear image Keating Co, is considering disposing of equipment that cost $53,000 and has $37,100 of accumulated
can i get some help
heres a morw clear image
Keating Co, is considering disposing of equipment that cost $53,000 and has $37,100 of accumulated depreciation to date. Keating Co, can sell the equipment through a broker for $27,000 less a 6% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $45,000. Keating will incur repair, insurance, and property tax expenses estimated at $12,000 over the five year period. At lease-end, the equipment is expected to have no residual value. The net differential profit or loss from the sell alternative. is a Oa. $9,144 profit Ob. $11.430 profit Oc. $7,620 Od. 55,334 loss Keating Co. is considering disposing of equipment that cost $53,000 and has $37,100 of accumulated depreciation to date. Keating Co. can sell the equipment through a broker for $27,000 less a 6% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of 545,000. Keating will incur repair, insurance, and property tax expenses estimated at $12,000 over the five-year period. At lease end, the equipment is expected to have no residual value. The net differential profit or loss from the sell alternative is a Oa. 39,144 profit Ob. 511,430 profit Oc. $7,620 loss Od. 55.334 106 Step by Step Solution
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