Differential Analysis for a Lease-or-Sell Decision Inman Construction Company is considering selling excess machinery with a book value of $281,900 (original cost of $401,800 less accumulated depreciation of $119,900) for $277,100, less a 5% brokerage commission. Alternatively, the machinery can be leased to another company for a total of $286,400 for five years, after which it is expected to have no residual value. During the period of the lease, Inman Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $25,600 a. Prepare a differential analysis, dated May 25 to determine whether Inman should lease (Alternative 1) or sell (Alternative 2) the machinery. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Lease Machinery (Alt. 1) or Sell Machinery (Alt. 2) May 25 Differential Effect Lease Machinery Sell Machinery on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs Income (Loss) b. On the basis of the data presented, would it be advisable to lease or sell the machinery? Explain. The net from selling is Process or Sell Product A is produced for $3.40 per pound. Product A can be sold without additional processing for $4.17 per pound or processed further into Product B at an additional cost of $0.42 per pound. Product can be sold for $4.34 per pound. Prepare a differential analysis dated November 15 on whether to sell A (Alternative 1) or process further into B (Alternative 2). If required, round your answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Product A (Alt. 1) or Process Further into Product B (Alt. 2) November 15 Sell Product A Process Further Differential Effect Into Product on Income (Alternative 1) B (Alternative 2) (Alternative 2) Revenues, per unit 4.17 Costs, per unit 3.40 X 042 X Income (Loss), per unit Check My Work Partially correct Should Product A be sold (Alternative 1) or processed further into Product B (Alternative 2)? Sell Product A Feedback Check My Work For hath noducts, subtract the unit costs from the revenue Determine the differential effect on income of the revenues, rats and income lineal hy subtracting