Solution-What the net differential income from the lease

What the net differential income from the lease

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Reference no: EM132967747

Question - Assume that Darrow Co. is considering disposing of equipment that cost P50,000 and has P40,000 of accumulated depreciation to date. Darrow Co. can sell the equipment through a broker for P25,000 less 5% commission. Alternatively, Minton Co. has offered to lease the equipment for five years for a total of P48,750. Darrow will incur repair, insurance, and property tax expenses estimated at P10,000. At lease-end, the equipment is expected to have no residual value. What the net differential income from the lease?

a. P25,000

b. P12,500

c. P5,000

d. P15,000

Reference no: EM132967747

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What the net differential income from the lease

Reference no: EM132967747

Reference no: EM132967747

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