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I need help with this asap please Bullwinke Company owns equipment with a cost of $361,500 and accumulated depreciation of $55,700 that can be sold
I need help with this asap please
Bullwinke Company owns equipment with a cost of $361,500 and accumulated depreciation of $55,700 that can be sold for $276,200, tes 5 a 5% sales commission. Alternatively, Bullwinkle Company can lease the equipment for 3 vears for a total of $288,000, at the end of which there is no residual value. In adeition; the ropair, Insurance, and property tax expense that would be incurred by Bullwinkle company on the equipenent would total $15,800 over the 3 -year lease. a. Prepare a differential analyis on October 29 as to whether Bullwinkle Compary should lease (Alternative 1) of sell (Aitemative 2) the equipment, If required, use a minus sign to indicate a loss. Differential Analysis Lease Equipment (Alt, 1) or Sell Equipment (Alt, 2) October 29 F Cheok Mr Whe Sobtract tha lesse costs from the lease revenues, Subtract the sell equipment costs from the sell equipment revenues, Determine the differential effect on income of the revenyes, costs, and inconse (loss) by subtracting aiternative 1 from alternative 2 Step by Step Solution
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