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Felix Company owns equipment with a cost of $365,800 and accumulated depreciation of $54,600 that can be sold for $276,200, less a 4% sales commission.

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Felix Company owns equipment with a cost of $365,800 and accumulated depreciation of $54,600 that can be sold for $276,200, less a 4% sales commission. Alternatively, Felix Company can lease the equipment for three years for a tota of $284,100, 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 $15,700 over the three year lease. a. Prepare a differential analysis on August 7 as to whether Felix Company should lease (Alternative 1 ) or sell (Alternative 2) the equipment. If required, use a minus sign to indicate a loss. b. Should Felix Company lease (Atternative 1) or sell (Alternative 2) the equipment

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