Inman Industries is considering selling excess machinery with a book value of $278,800 (original cost of...

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Inman Industries is considering selling excess machinery with a book value of $278,800 (original cost of $398,500 less accumulated depreciation of $119,700) for $275,000 less a 6% brokerage commission. Alternatively, the machinery can be leased for a total of $286,500 for five years, after which it is expected to have no residual value. During the period of the lease, Inman Industries' costs of repairs, insurance, and property tax expenses are expected to be $25,100. a. Prepare a differential analysis report for the lease or sell decision. INMAN INDUSTRIES Proposal to Lease or Sell Machinery Differential Analysis Report Differential revenue from alternatives: Revenue from lease 286.500 Proceeds from sale 275000 Differential revenue from lease 11,500 Differential cost of alternatives: Repairs, Insurance, and property tax expenses from lease S Commission on sale Differential cost of lease Net differential gain from lease alternative Inman Industries is considering selling excess machinery with a book value of $278,800 (original cost of $398,500 less accumulated depreciation of $119,700) for $275,000 less a 6% brokerage commission. Alternatively, the machinery can be leased for a total of $286,500 for five years, after which it is expected to have no residual value. During the period of the lease, Inman Industries' costs of repairs, insurance, and property tax expenses are expected to be $25,100. a. Prepare a differential analysis report for the lease or sell decision. INMAN INDUSTRIES Proposal to Lease or Sell Machinery Differential Analysis Report Differential revenue from alternatives: Revenue from lease 286.500 Proceeds from sale 275000 Differential revenue from lease 11,500 Differential cost of alternatives: Repairs, Insurance, and property tax expenses from lease S Commission on sale Differential cost of lease Net differential gain from lease alternative

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