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Keating Co. is considering disposing of equipment with a cost of $62,000 and accumulated depreciation of $43,400. Keating Co.

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Answer #1

Answer : $9,520(d)

Given:

Lease amount=$47,000

Estimated expenses=$12,000

Sale of euipment through broker $28,000 less 9% commission(Net sale of equipment)

If equipment leased net differential income = Lease amount - estimated expenses - net sale of equipment

= $47,000-$12,000-($28,000-($28,000*9%)

=$47,000-$12000-($28,000-$2,520)

=$47,000-$12000-$25,480

=$47,000-$37,480

=$9,520

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