Keating co. is considering disposing of equipment with a cost of $50,000 and accumulated depreciation of $40,000. keating co. can sell the equipment through a broker for $25,000, less a 5% broker commission. alternatively, gunner co. has offered to lease the equipment for five years for a total of $48,750. keating will incur repair, insurance, and property tax expenses estimated at $8,000 over the five-year period. at lease-end, the equipment is expected to have no residual value. the net differential income from the lease alternative is a. $14,500 b. $7,000 c. $17,000 d. $27,000

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.