Granite construction company is considering selling excess machinery with a book value of $304,400 (original cost of $427,700 less accumulated depreciation of $123,300) for $211,900, less a 4% brokerage commission. alternatively, the machinery can be leased for a total of $206,540 for five years, after which it is expected to have no residual value. during the period of the lease, granite construction company’s costs of repairs, insurance, and property tax expenses are expected to be $11,496.required: a. prepare a differential analysis, dated november 7 to determine whether granite should lease (alternative 1) or sell (alternative 2) the machinery. refer to the amount descriptions list provided for the exact wording of the answer choices for text entries. for those boxes in which you must enter subtracted or negative numbers use a minus sign. b. on the basis of the data presented, would it be advisable to lease or sell the machinery? explain. amount descriptions costs income (loss) revenuesa. prepare a differential analysis, dated november 7 to determine whether granite should lease (alternative 1) or sell (alternative 2) the machinery. refer to the amount descriptions list provided for the exact wording of the answer choices for text entries. for those boxes in which you must enter subtracted or negative numbers use a minus sign. differential analysislease (alternative 1) or sell (alternative 2) machinerynovember 71lease machinerysell machinerydifferential effect on income2(alternative 1)(alternative 2)(alternative 2)345b. on the basis of the data presented, would it be advisable to lease or sell the machinery? explain. lease the machinerysell the machinerythe net from selling is .

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

Each of the following scenarios is based on facts in anactual fraud. categorize each scenario as primarily indicating (1) anincentive to commit fraud, (2) an opportunity to commit fraud, or(3) a rationalization for committing fraud. also state your reasoningfor each scenario.a. there was intense pressure to keep the corporation ' stock from declining further. this pressure came from investors, analysts,and the ceo, whose financial well-being was significantly dependent on the corporation ' s stock price.b. a group of top-level management was compensated (mostly in the form of stock-options) well in excess of what would be considered normal for their positions in this industry.c. top management of the company closely guards internal financial information, to the extent that even some employees on a “need-to-know basis” are denied full access.d. managing specific financial ratios is very important to the company, and both management and analysts are keenly observant of variability in key ratios. key ratios for the company changed very little even though the ratios for the overall industry were quite volatile during the time period.e. in an effort to reduce certain accrued expenses to meet budget targets, the cfo directs the general accounting department to reallocate a division’s expenses by a significant amount. the general accounting department refuses to acquiesce to the request, but the journal entry is made trough the corporate office. an accountant in the general accounting department is uncomfortable with the journal entries required to reallocate divisional expenses. he brings his concerns to the cfo, who assures him that everything will be fine and that the entries are necessary. the accountant considers resigning, but he does not have another job lined up and is worried about supporting his family. therefore, he never voices his concerns to either the internal or external auditors.f. accounting records were either nonexistent or in a state of such disorganization that significant effort was required to locate or compile them.

Asavings account that pays interest every 3 months is said to have a interest period