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Keating Co. is considering disposing of equipment that cost $63,000 and has $44,100 of accumulated depreciation to date. Keating Co. can sell the equipmen through
Keating Co. is considering disposing of equipment that cost $63,000 and has $44,100 of accumulated depreciation to date. Keating Co. can sell the equipmen through a broker for $28,000 less a 6% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $48,000. Keating will incur repair, Insurance, and property tax expenses estimated at $8,000 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 a. $13.50 los b. 520,520 pro c. 59,576 d. 316,416
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