D'Amato Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,787. The freight and installation costs for the equipment are $450. If purchased, annual repairs and maintenance are estimated to be 5402 per year over the four-year useful life of the equipment. Alternatively, D'Amato can lease the equipment from a domestic supplier for $1,701 per year for four years, with no additional costs Required: A. Prepare a differential analysis dated December 11 to determine whether D'Amato should lease (Alternative 1) or purchase (Alternative 2) the equipment. Refer to the lists of Labels and Amount Descriptions 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. (Hint: This is a lease-or-buy decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment owner.) B. Determine whether the D'Amato should lease (Alternative 1) or purchase (Alternative 2) the equipment. Labels and Amount Descriptions x Differential Analysis Shaded cells have feedback. X Labels Cash flows from operating activities Costs A. Prepare differential analysis dated December 11 to determine whether D'Amato should lease (Alternative 1) or purchase (Alternative 2) the equipment. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtractive or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (1) will automatically appear if required. Hint: This is a lease-or-buy decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment owner. Amount Descriptions Freight and installation Import tariff Income (loss) Lease (4 years) Purchase price Repair and maintenance (4 years) Revenues Question not attempted. Differential Analysis Score: 0/125 Lease Equipment (Alternative 1) or Buy Equipment (Alterative 2) December 11 Total costs 1 Lease Equipment Buy Equipment Differential Effect on Income (Alternative 2) 2 (Alternative 1) (Alternative 2) 3 4 (Label) 5 6 7 8 9 10