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please show work or explain calculations. Thank you. Differential Analysis for a Lease or Sell Decision Burlington Construction Company is considering selling excess machinery with
please show work or explain calculations. Thank you.
Differential Analysis for a Lease or Sell Decision Burlington Construction Company is considering selling excess machinery with a book value of $277,500 (original cost of 5399.000 less accumulated depreciation of $121,500) for $277,000, less a 5% brokerage commission. Aternatively, the machinery can be leased for a total of 5287,300 for five years, after which it is expected t have no residual value. During the period of the lease, Burington Construction Company's costs of repains, insurance, and property tox expenses are expected to be $24,800 a. Prepare a differential analysis dated January 15 to determine whether Burlington Construction Company should lease (Alternative 1) or seil (Alternative 2) the machinery, If required; use a minus sign to indicate a loss. Differential Analysis Lease (Alt. 1) or Sell (Alt, 2) Machinery b. On the basis of the data presented, would it be advisable to lease or sell the machinery Step by Step Solution
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