Yamada industries is considering selling excess machinery

Reference no: EM13577622

Yamada Industries is considering selling excess machinery with a book value of @220,000 (original cost of $600,000 less accumulated depreciation of #380,000) for $200,000, less a 6% brokerage commission. Alternatively, the machinery can be leased for a total of @290,000 for five years, after which it is expected to have o residual value. During the period of the lease, Yamada Industries costs of repairs, insurance, and property tax expenses are expected to be $71,000.

A. Prepare a differential analysis report, dated January 9,2012, for the lease or sell decision.

B. On the basis of the data presented, would it be advisable to lease or sell the machinery? explain.

Reference no: EM13577622

Questions Cloud

In this era of rapidly changing technology research and : in this era of rapidly changing technology research and development rampd expenditures represent one of the most

Laker uses a periodic inventory system for specific : laker company reported the following january purchases and sales data for its only product.dateactivitiesunits acquired

Do these data suggest a statistically significant : medical tests were conducted to learn about drug-resistant tuberculosis. of 142 cases testedin new jersey 9 were found

Auctioncocom sells used products collected from different : auctionco.com sells used products collected from different suppliers. assume a customer ordered a used bicycle through

Yamada industries is considering selling excess machinery : yamada industries is considering selling excess machinery with a book value of 220000 original cost of 600000 less

Construct the probabilty distribution for this experiment : an experiment consists of tossing three unfair coins where the probabilty of tossing a head on each is 25. construct

Use exponential smoothing with alpha 2 and the smoothed : q1. given the following data compute the mad for the forecast. nbspnbspnbspnbspnbspnbspnbspnbsp

Prepare entries for allied parts to record the may 5 sale : allied parts was organized on may 1 2013 and made its first purchase of merchandise on may 3. the purchase was for 1400

In random sampling each item or element of the population : in random sampling each item or element of the population has an equal chance of being chosen at each draw. a sample is

User Account

All Pages