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Keating Co. is considering disposing of equipment that cost $80,000 and has $56,000 of accumulated depreciation to date. Keating Co. can sell the equipment through

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Keating Co. is considering disposing of equipment that cost $80,000 and has $56,000 of accumulated depreciation to date. Keating Co. can sell the equipment through a broker for $26,000 less a 7% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $47,000. Keating will incur repair, Insurance, and property tax expenses estimated at $10,000 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 $8,974 loss b. $15,384 profit c. $12,820 loss d. $19,230 profit

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