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EE 25-1 p. 1221 PE 25-1B Lease or sell OBJ. 1 W Ferrigno Company owns equipment with a cost of $225,000 and accumulated depreciation OW
EE 25-1 p. 1221 PE 25-1B Lease or sell OBJ. 1 W Ferrigno Company owns equipment with a cost of $225,000 and accumulated depreciation OW of $81,000 that can be sold for $113,000 less a 6% sales commission. Alternatively, Ferrigno Company can lease the equipment to another company for 5 years for a total of $115,100, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Ferrigno Company on the equipment would total $11,890 over the 5 years. Prepare a differential analysis on March 23 as to m whether Ferrigno Company should Lease Equipment (Alternative 1) or Sell Equipment (Alternative 2).E 25-2 0 1227 PE 25-2B Discontinue a segment OBJ. 1 Product X has revenue of $94,800, variable cost of goods sold of $61,200, variable sell- ing expenses of $39,700, and fixed costs of $36,000, creating a loss from operations of $42,100. Prepare a differential analysis as of May 9 to determine whether to Continue Product X (Alternative 1) or Discontinue Product X (Alternative 2), assuming fixed costs are unaffected by the decision
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