Keating co. is considering disposing of equipment with a cost of $61,000 and accumulated depreciation of $42,700. keating co. can sell the equipment through a broker for $27,000, less a 6% broker commission. alternatively, gunner co. has offered to lease the equipment for five years for a total of $50,000. keating will incur repair, insurance, and property tax expenses estimated at $12,000 over the five-year period. at lease-end, the equipment is expected to have no residual value.
1. the net differential income from the lease alternative is

$12,620

Explanation:

The net income of selling the equipment through a broker (Nb) is given by the selling price minus the broker commission:

The net income of leasing the equipment to Gunner Co. (Nl) is given by the total lease amount subtracted by the repair, insurance, and property tax expenses:

The net differencial income (NDI) from the lease alternative is:

(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

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the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph​ topics, you should always choose a subject that can be adequately addressed in a single paragraph.

a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.

so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.