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Business, 11.12.2019 01:31 sidneylww

Keating co. is considering disposing of equipment with a cost of $61,000 and accumulated depreciation of $42,700. keating co. can sell the equipment through a broker for $27,000, less a 6% broker commission. alternatively, gunner co. has offered to lease the equipment for five years for a total of $50,000. keating will incur repair, insurance, and property tax expenses estimated at $12,000 over the five-year period. at lease-end, the equipment is expected to have no residual value.
1. the net differential income from the lease alternative is

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