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Disposal of equipment that is no longer needed for operations




Bell company is considering the disposal of equipment that is no longer needed for operations. the equipment originally cost $500,000 and accumulated depreciation to date totals $360,000. An offer has been received to lease the machine for its remaining useful life for a total of $170,000, after which the equipment will have no salvage value. The repair, insurance, and property tax expenses during the period of the lease are estimated at $35,600. Alternatively, the equipment can be sold through a broker for $120,000 less a 10% commission.;Prepare a differential analysis report, dated June 15 of the current year(2009), on whether the equipment should be leased or sold.


Paper#26640 | Written in 18-Jul-2015

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