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Lease or Sell Decision Sure-Bilt Industries is considering selling excess machinery with a book value of $279,700 (original cost of $398,900 less accumulated depreciation of
Lease or Sell Decision Sure-Bilt Industries is considering selling excess machinery with a book value of $279,700 (original cost of $398,900 less accumulated depreciation of $119,200) for $276,500 less a 6% brokerage commission. Alternatively, the machinery can be leased for a total of $286,000 for five years, after which it is expected to have no residual value. During the period of the lease, Sure-Bilt Industries' costs of repairs, insurance, and property tax expenses are expected to be $25,900. a. Prepare a differential analysis report for the lease or sell decision. SURE-BILT INDUSTRIES Proposal to Lease or Sell Machinery Differential Analysis Report Differential revenue from alternatives: Differential cost of alternatives: b. Based on the data presented, which is the most appropriate plan of action
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