Bullwinkle Company owns a equipment with a cost of $365,300 and accumulated depreciation of $55,400 that can be sold for $277 commission. Alternatively, Bullwinkle Company can lease the equipment to another company for three years for a total of $286,700, at the end of which there is no residual valoe. In addition, the repair, insurance, and property tax expense that would be incurred by Bullwinkle Company on the equipment would total $15,100 over the three years. Prepare a differeotial analysis on March 23 os to whether Buliwinkle Company should lease (Alternative 1) or sell (Alternative 2) the equipment. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Lease Equipment (Alt. 1) or Sell Equipment (Alt. 2) March 23 Differential Effect Lease Equipment Sell Equipment (Alternative 1) on Income (Alternative 2) (Alternative 2) Revenues Costs Income (Loss) Should Bullwinkle Company lease (Alternative 1) or sell (Alternative 2) the equipment

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Bullwinkle Company owns a equipment with a cost of $365,300 and accumulated depreciation of $55,400 that can be sold for $277,400, less a 3% sales
commission. Alternatively, Bullwinkle Company can lease the equipment to another company for three years for a total of $286,700, at the end of which there
is no residual valoe. In addition, the repair, insurance, and property tax expense that would be incurred by Bullwinkle Company on the equipment would total
$15,100 over the three years.
Prepare a differential analysis on March 23 os to whether Buliwinkle Company should lease (Alternative 1) or sell (Alternative 2) the equipment. For those
boxes in which you must enter subtracted or negative numbers use a minus sign.
Differential Analysis
Lease Equipment (Alt. 1) or Sell Equipment (Alt. 2)
March 23
Differential Effect
Lease Equipment Sell Equipment
(Alternative 1)
on Income
(Alternative 2)
(Alternative 2)
Revenues
Costs
Income (Loss)
Should Bullwinkle Company lease (Alternative 1) or sell (Alternative 2) the equipment
Transcribed Image Text:Bullwinkle Company owns a equipment with a cost of $365,300 and accumulated depreciation of $55,400 that can be sold for $277,400, less a 3% sales commission. Alternatively, Bullwinkle Company can lease the equipment to another company for three years for a total of $286,700, at the end of which there is no residual valoe. In addition, the repair, insurance, and property tax expense that would be incurred by Bullwinkle Company on the equipment would total $15,100 over the three years. Prepare a differential analysis on March 23 os to whether Buliwinkle Company should lease (Alternative 1) or sell (Alternative 2) the equipment. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Lease Equipment (Alt. 1) or Sell Equipment (Alt. 2) March 23 Differential Effect Lease Equipment Sell Equipment (Alternative 1) on Income (Alternative 2) (Alternative 2) Revenues Costs Income (Loss) Should Bullwinkle Company lease (Alternative 1) or sell (Alternative 2) the equipment
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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