Pull Company Is Considering the Disposal of Equipment That Is

Essay

Pull Company is considering the disposal of equipment that is no longer needed for operations.The equipment originally cost $600,000,and accumulated depreciation to date totals $460,000.An offer has been received to lease the machine for its remaining useful life for a total of $300,000,after which the equipment will have no salvage value.The repair,insurance,and property tax expenses during the period of the lease are estimated at $75,800.Alternatively,the equipment can be sold through a broker for $230,000 less a 10% commission.