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please show the work you did to get the costs and profit and why ! thank you Bullwinkle Company owns equipment with a cost of
please show the work you did to get the costs and profit and why ! thank you
Bullwinkle Company owns equipment with a cost of $364,500 and accumulated depreciation of $53,600 that can be sold for $274,500, less a 4% sales commission. Alternatively, Bullwinkle Company can lease the equipment for 3 years for a total of $287,700, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Bullwinkle Company on the equipment would total $15,400 over the 3-year lease. a. Prepare a differential analysis on October 29 as to whether Bullwinkle Company should lease (Alternative 1 ) or sell (Alternative 2 ) the equipment. If required, use a minus sign to indicate a lossStep by Step Solution
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