Solution-Find the net differential profit or loss from the

Find the net differential profit or loss from the sell

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Reference no: EM132591540

Question - Keating Co. is considering disposing of equipment that cost $79,000 and has $55,300 of accumulated depreciation to date. Keating Co. can sell the equipment through a broker for $31,000 less a 8% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $49,000. 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. Find the net differential profit or loss from the sell alternative?

a. $14,976 profit

b. $8,736 loss

c. $18,720 profit

d. $12,480 loss

Reference no: EM132591540

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Find the net differential profit or loss from the sell

Reference no: EM132591540

Reference no: EM132591540

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