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Business, 03.12.2019 06:31 emilyharper

Keating co. is considering disposing of equipment with a cost of $50,000 and accumulated depreciation of $40,000. keating co. can sell the equipment through a broker for $25,000, less a 5% broker commission. alternatively, gunner co. has offered to lease the equipment for five years for a total of $48,750. keating will incur repair, insurance, and property tax expenses estimated at $8,000 over the five-year period. at lease-end, the equipment is expected to have no residual value. the net differential income from the lease alternative is a. $14,500 b. $7,000 c. $17,000 d. $27,000

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