12-01Ex_5e_s

Survey of Accounting (Available Titles Cengagenow)

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Exercise 12-1 Name: . Section: Score: 0% Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) wil appear in the row immediately to the right of an incorrect answer. a. Proposal to Lease or Sel Machinery January 3, 2010 Differential revenue from alternatives: Revenue from lease Proceeds from sale Differential revenue from lease Differential cost of alternatives: Repair, insurance, and property tax expenses Commission on sale Differential cost of lease Net differential income from lease alternatives b. Is it advisable to lease or sel the machinery? Explain: Instructions
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Exercise 12-1 Name: SOLUTION Section Score: See student sheet for student's score Scoring ON Answers are entered in the cells with gray backgrounds.
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Unformatted text preview: Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) wil appear in the row immediately to the right of an incorrect answer. a. Proposal to Lease or Sel Machinery January 3, 2010 Differential revenue from alternatives: Revenue from lease $312,000 Proceeds from sale 292,000 Differential revenue from lease $20,000 Differential cost of alternatives: Repair, insurance, and property tax expenses $36,000 Commission on sale 14,600 Differential cost of lease 21,400 Net differential income from lease alternatives $(1,400) b. Is it advisable to lease or sel the machinery? Sel Explain: The net gain from sel ing is $1,400. Instructions...
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This note was uploaded on 11/04/2011 for the course ACC 121 taught by Professor Thomas during the Winter '08 term at Baker MI.

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12-01Ex_5e_s - Cells with non-gray backgrounds are...

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