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Rhombus Construction Company is considering selling excess machinery with a book value of $125,000 (original cost of $340,000 less accumulsted depreciation of $215,000 ) for

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Rhombus Construction Company is considering selling excess machinery with a book value of $125,000 (original cost of $340,000 less accumulsted depreciation of $215,000 ) for $102,000 less a 5% brokerage commission. Alternatively, the machinery can be leased to anether company for a total of $125,000 for 5 years, after which it is expected to have no residual value. During the period of the lease, Rhombus Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $36,500. a. Prepare a dicferential analysib, dated May 25 to determine whether Rhombus should lease (Alternative 1) or sell (Alternative 2) the machinery. For these boxes in which you muast enter subtracted or negative numbers use a minus sign. - Peck Mhen b. On the basis of the data presented, would it be advisable to lease or sell the machinery? Explain. The net from seling is 5

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