Felix Company owns equipment with a cost of $364,900 and accumulated depreciation of $56,000 that can be sold for $278,000, less a 3% sales commission. Alternatively, Felix Company can lease the equipment for three years for a total of $286,300, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Felix Company on the equipment would total $15,000 over the three year lease. a. Prepare a differential analysis on February 18, as to whether Felix Company should lease (Alternative 1) or sell (Alternative 2) the equipment. Differential Analysis Lease (Alt. 1) or Sell (Alt. 2) Equipment February 18 Revenues Costs Income (Loss) Differential Effect Lease Equipment (Alternative 1) Sell Equipment (Alternative 2) on Income (Alternative 2) Granite Construction Company is considering selling excess machinery with a book value of $278,100 (original cost of $399,700 less accumulated depreciation of $121,600) for $276,100, less a 5% brokerage commission. Alternatively, the machinery can be leased for a total of $287,500 for five years, after which it is expected to have no residual value. During the period of the lease, Granite Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $25,500. a. Prepare a differential analysis, dated November 7 to determine whether Granite should lease (Alternative 1) or sell (Alternative 2) the machinery. Revenues Differential Analysis Lease Machinery (Alt. 1) or Sell Machinery (Alt. 2) November 7 Lease Machinery (Alternative 1) Sell Machinery (Alternative 2) Differential Effect on Income (Alternative 2) Costs Income (Loss)