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Business, 05.05.2020 05:13 uehlingt39

Keating Co. is considering disposing of equipment that cost $72,000 and has $50,400 of accumulated depreciation to date. Keating Co. can sell the equipment through a broker for $32,000 less a 10% 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 $10,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential profit or loss from the sell alternative is a a.$15,300 profit b.$12,240 profit c.$10,200 loss d.$7,140 loss

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