con Company owns a machine with a cost of $$305,000$ and accumulated depreciation of $$65,000$ that can be sold for $$262,000,$ less a $5\%$ sales commission. Alternatively, the machine can be leased by Claxon Company of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Claxon Company on the machine would total $$21,600$ over the three years.

Required:

Prepare a differential analysis on January $12$ as to whether Claxon Company should lease $($Alternative $1)$ or sell $($Alternative $2)$ the machine.

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Should Claxon Company lease $($Alternative $1)$ or sell $($Alternative $2)$ the machine?