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Please write out correct answer and whether it's A, B, C or D. Thank you. Granite Construction Company is considering selling excess equipment with a
Please write out correct answer and whether it's A, B, C or D. Thank you.
Granite Construction Company is considering selling excess equipment with a book value of $4,000 (original cost of $10,000 less accumulated depreciation of $6,000) for $10,000 less a 3% brokerage commission. Alternatively, the machinery can be leased to another company for a total of $11,000 for five years, after which it is expected to have no residual value. During the period of the lease, Granite Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $800. Granite should O sell the equipment generating differential income of $200 lease the equipment generating differential income of $500 lease the equipment generating differential income of $350 O sell the equipment generating differential income of $500 Step by Step Solution
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