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Keating Co. is considering disposing of equipment that cost $51,000 and has $35,700 of accumulated...

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Accounting

Keating Co. is considering disposing of equipment that cost $51,000 and has $35,700 of accumulated depreciation to date. Keating Co. can sell the equipment through a broker for $29,000 less a 6% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $46,000. Keating will incur repair, insurance, and property tax expenses estimated at $8,000 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. $12,888 profit
b. $10,740 loss
c. $16,110 profit
d. $7,518 loss
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