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Question Content Area Keating Co. is considering disposing of equipment that cost $54,000 and...

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Accounting

Question Content Area
Keating Co. is considering disposing of equipment that cost $54,000 and has $37,800 of accumulated depreciation to date. Keating Co. can sell the equipment through a broker for $26,000 less a 7% 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. The net differential profit or loss from the sell alternative is a
a. $13,820 loss
b. $9,674 loss
c. $16,584 profit
d. $20,730 profit

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