[PhillySportsFan]

The Stewart Cake Factory owns a building for its operations. Stewart uses only half of the building and its considering two options that have been presented to them. The Candy Store would like to purchase the half of the building that is not being used for $550,000. A 7% commission would have to be paid at the time of purchase. Ice Cream Delight would like to lease the half of the building for the next 5 years at $100,000 each year. Stewart would have to continue paying $9,000 of property taxes each year and $1,000 of yearly insurance on the property, according to the proposed lease agreement.

[paraclete]

This is what is called a no brianer but I digress, what is the question

[PhillySportsFan]

Determine the differential income or loss from the lease alternative.

[paraclete]

So what is "your "answer or what is your problem

[PhillySportsFan]

Apparently you are having trouble reading since it is clearly right in front of you... the problem

[paraclete]

I don't have a comprehension problem but I will not do your work for you what specifically is the difficulty you are having with this problem? Show me your work

[PhillySportsFan]

I am already going to get help because clearly you are not going to help me out.

[PhillySportsFan]

Sale to Candy Store:
Revenue from sale... $550,000
Commission paid ($550,000 x 7%)... ($38,500)
... $511,500

Lease to Ice Cream Delight:
Revenue from lease... $500,000
Repair, insurance, and property
tax expenses from lease... ($50,000) ... $450,000
Net differential income from the lease alternative... $61,500

[paraclete]

So you conclude sale is the better option

[PhillySportsFan]

Yes