Claxon Company owns a machine with a cost of $304,560 and accumulated depreciation of $66,700 that can be sold for $260,100, less a 6% sales commission. Alternatively, the machine can be leased by Claxon Company for three years for a total of $272,000, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Claxon Company on the machine would total $24,536 over the three years.

	Required:
1.	Prepare a differential analysis on January 12 as to whether Claxon Company should lease (Alternative 1) or sell (Alternative 2) the machine. 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. If there is no amount or an amount is zero, enter 0. A colon (:) will automatically appear if required.
2.	Should Claxon Company lease (Alternative 1) or sell (Alternative 2) the machine?

Pre are r rnna ans a on January 2 ss io whether Cla on ar pery should lease A Berna ve ar ae A ernative 2 the ma hne Reer o he Amour or regativ number uvs rn nus gn if there (s no amount or an arnuurt is zero, enter "o". A co on .) wi0 uirratca y appear required esc ptions et provide or he exact wording o he answer cho ces for text en nes.ro hose bo es n wh ch you must enter zubta Quostion nor artempred. Score: 1 Diffarantial Analyss Lease (Altermabve 1or Sell Alternatve 21 Machine January 12 Differential Effect on Income Altermatiwe 1) (Alternative 2) Altematiwe 2)