Matrix construction company is considering selling excess machinery with a book value of $75,000 (original cost of $200,000 less accumulated depreciation of $125,000) for $60,000 less a 5% brokerage commission. alternatively, the machinery can be leased to another company for a total of $75,000 for five years, after which it is expected to have no residual value. during the period of the lease, matrix construction company’s costs of repairs, insurance, and property tax expenses are expected to be $21,500.
required :
a. prepare a differential analysis, dated may 25 to determine whether matrix should lease (alternative 1) or sell (alternative 2) the machinery.

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.