Plymouth Company owns equipment with a cost of $600,000 and accumulated depreciation of $375,000 that can be sold for $300,000, less a 4% sales commission. Alternatively, Plymouth Company can lease the equipment for four years for a total of $320,000, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Plymouth Company on the equipment would total $40,000 over the four-year lease. A. Prepare a differential analysis on August 7 as to whether Plymouth Company should lease (Alternative 1) or sell (Alternative 2) the equipment.
B. Should Plymouth Company lease (Alternative 1) or sell (Alternative 2) the equipment?

A. We have:

Profit from Lease Equipment (Alternative 1) = $280,000

Profit from Sell Equipment (Alternative 2) = $288,000

Differential Effects = Net gain from selling = $8,000

B. Since the net gain from selling is $8,000, Plymouth Company should sell (Alternative 2) the equipment.

Explanation:

A. Prepare a differential analysis on August 7 as to whether Plymouth Company should lease (Alternative 1) or sell (Alternative 2) the equipment.

Note: See the attached excel file for the differential analysis.

In the attached excel file, the following calculation is made:

Cost of Sell Equipment (Alternative 2) = Sales commission = Revenue * Sales commission percentage = $300,000 * 4% = $12,000

From attached excel file, we have:

Profit from Lease Equipment (Alternative 1) = $280,000

Profit from Sell Equipment (Alternative 2) = $288,000

Differential Effects = Net gain from selling = $8,000

B. Should Plymouth Company lease (Alternative 1) or sell (Alternative 2) the equipment?

Since the net gain from selling is $8,000, Plymouth Company should sell (Alternative 2) the equipment.

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'