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Granite Construction Company is considering selling excess machinery with a book value of $279,100 (original...

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Accounting

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Granite Construction Company is considering selling excess machinery with a book value of $279,100 (original cost of $399,800 iess accumulated depreciation of $120,700) for $276,800, less a 5% brokerage commission. Alternatively, the machinery can be leased for a total of $286,800 for five years, after which it is expected to have no residual value. During the pericd of the lease, Granilte Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $25,700. a. Prepare a differential analysis, dated November 7 to determine whether Granite should lease (A)ernativa : 1

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