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Differential Analysis for a Lease or Sell Decision Steady Construction Company is considering selling excess machinery with a book value of $280,000 (original cost of
Differential Analysis for a Lease or Sell Decision Steady Construction Company is considering selling excess machinery with a book value of $280,000 (original cost of $400,000 less accumulated depreciation of $120,000) for $244,000, less a 5% brokerage commission. Alternatively, the machinery can be leased for a total of $255,000 for five years, after which it is expected to have no residual value. During the period of the lease, Steady Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $23,800 Prepare a differential analysis to determine whether Steady should lease (Alternative 1) or sell (Alternative 2) the machinery Which alternative would you recommend
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