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What net differential profit or loss from sell alternative

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Question 1: Keating Co. is considering disposing of equipment that cost $58,000 and has $40,600 of accumulated depreciation to date. Keating Co. can sell the equipment through a broker for $26,000 less a 9% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $45,000. 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. $6,538 loss

b. $11,208 profit

c. $9,340 loss

d. $14,010 profit

Reference no: EM132586005

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