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While disposing a bus, Samm Inc realized they can sell to a broker for $85,000 less a 6% commission to the broker. Whereas, Lark Corp
While disposing a bus, Samm Inc realized they can sell to a broker for $85,000 less a 6% commission to the broker. Whereas, Lark Corp asked to lease the bus for 5 years for $90,000. If the truck is leased out to Lark corp. Samm Inc will incure fees of $12,000 over the 5 year period. No salvage value at the end. Show the increase/ decrease of net income for 5 years if the bus us leant out to Lark corp and not sold.
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