ZuoTi.Pro
Question

Kincaid Company owns a equipment with a cost of $366,100 and accumulated depreciation of $53,600 that...

Kincaid Company owns a equipment with a cost of $366,100 and accumulated depreciation of $53,600 that can be sold for $277,900, less a 3% sales commission. Alternatively, Kincaid Company can lease the equipment to another company for three years for a total of $284,600, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Kincaid Company on the equipment would total $15,600 over the three years.

Prepare a The area of accounting concerned with the effect of alternative courses of action on revenues and costs.differential analysis on March 23 as to whether Kincaid 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
Lease Equipment
(Alternative 1)		 Sell Equipment
(Alternative 2)		 Differential Effect
on Income
(Alternative 2)
Revenues $ $ $
Costs
Income (Loss) $ $ $

Feedback

Should Kincaid Company lease (Alternative 1) or sell (Alternative 2) the equipment?

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
Kincaid Company owns a equipment with a cost of $366,100 and accumulated depreciation of $53,600 that...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Casper Company owns a equipment with a cost of $361,300 and accumulated depreciation of $52,300 that...

    Casper Company owns a equipment with a cost of $361,300 and accumulated depreciation of $52,300 that can be sold for $276,800, less a 4% sales commission. Alternatively, Casper Company can lease the equipment to another company for three years for a total of $286,900, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Casper Company on the equipment would total $15,100 over the three years....

  • Lease or Sell Casper Company owns a equipment with a cost of $367,800 and accumulated depreciation...

    Lease or Sell Casper Company owns a equipment with a cost of $367,800 and accumulated depreciation of $52,800 that can be sold for $276,900, less a 4% sales commission. Alternatively, Casper Company can lease the equipment to another company for three years for a total of $288,500, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Casper Company on the equipment would total $15,400 over...

  • 1. Lease or Sell Bullwinkle Company owns a equipment with a cost of $363,500 and accumulated...

    1. Lease or Sell Bullwinkle Company owns a equipment with a cost of $363,500 and accumulated depreciation of $53,600 that can be sold for $274,400, less a 5% sales commission. Alternatively, Bullwinkle Company can lease the equipment to another company for three years for a total of $284,800, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Bullwinkle Company on the equipment would total $15,200...

  • Lease or Sell Felix Company owns equipment with a cost of $362,700 and accumulated depreciation of...

    Lease or Sell Felix Company owns equipment with a cost of $362,700 and accumulated depreciation of $56,800 that can be sold for $275,200, less a 5% sales commission. Alternatively, Felix Company can lease the equipment for three years for a total of $286,100, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Felix Company on the equipment would total $16,700 over the three year lease....

  • Calculator Lease or Sell Casper Company owns equipment with a cost of $363,200 and accumulated depreciation...

    Calculator Lease or Sell Casper Company owns equipment with a cost of $363,200 and accumulated depreciation of $52,300 that can be sold for $273,000, less a 49 sales commission. Alternatively, Casper Company can lease the equipment for three years for a total of $287,300, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Casper Company on the equipment would total $16,200 over the three year...

  • Lease or Sell Plymouth Company owns equipment with a cost of $600,000 and accumulated depreciation of...

    Lease or Sell Plymouth Company owns equipment with a cost of $600,000 and accumulated depreciation of $375,000 that can be sold for $300,000, less a 4% sales commission. Alternatively, Plymouth Company can lease the equipment for four years for a total of $320,000, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Plymouth Company on the equipment would total $40,000 over the four-year lease. a....

  • Timberlake Company owns equipment with a cost of $165,000 and accumulated depreciation of $60,000 that can...

    Timberlake Company owns equipment with a cost of $165,000 and accumulated depreciation of $60,000 that can be sold for $82,000, less a 6% sales commission. Alternatively, the equipment can be leased by Timberlake Company for five years for a total of $84,600, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Timberlake Company on the equipment would total $7,950 over the five years. Prepare a...

  • Claxon Company owns a machine with a cost of $308,440 and accumulated depreciation of $63,270 that...

    Claxon Company owns a machine with a cost of $308,440 and accumulated depreciation of $63,270 that can be sold for $264,500, less a 6% sales commission. Alternatively, the machine can be leased by Claxon Company for three years for a total of $276,490, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Claxon Company on the machine would total $24,440 over the three years. :...

  • Sure-Bilt Construction Company is considering selling excess machinery with a book value of $281,...

    Sure-Bilt Construction Company is considering selling excess machinery with a book value of $281,600 (original cost of $400,100 less accumulated depreciation of $118,500) for $277,300, less a 5% brokerage commission. Alternatively, the machinery can be leased to another company for a total of $285,600 for five years, after which it is expected to have no residual value. During the period of the lease, Sure-Bilt Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $26,400. a....

  • Differential Analysis for a Lease or Sell Decision Granite Construction Company is considering selling excess machinery with a book value of $279,400 (original cost of $399,100 less accumulated deprec...

    Differential Analysis for a Lease or Sell Decision Granite Construction Company is considering selling excess machinery with a book value of $279,400 (original cost of $399,100 less accumulated depreciation of $119,700) for $276,100, less a 5% brokerage commission. Alternatively, the machinery can be leased for a total of $287,400 for five years, after which it is expected to have no residual value. During the period of the lease, Granite Construction Company's costs of repairs, insurance, and property tax expenses are...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT