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Pike industries is considering seling excess machinery with a book value of $150,000 (original cost of $475,000 less accumulated depreciation of $325,000) for $72,500 iess
Pike industries is considering seling excess machinery with a book value of $150,000 (original cost of $475,000 less accumulated depreciation of \$325,000) for $72,500 iess a 5 w brokerage commission. Alternatively, the machinery can be leased out for a total of $107,500 for five years, aRee which it is expected to have no residual value. During the period of the lease, Pike Industries' costs of repairs, insurance, and property tax expenses are expected to be $40,000. a. Prepare a differential analysis report for the lease or sell decision. b. Based on the data presented, which is the most appropriate plan of action
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