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Felix Company owns equipment with a cost of $367,300 and accumulated depreciation of $56,900 that can be sold for $274,000, less a 4% sales commission.
Felix Company owns equipment with a cost of $367,300 and accumulated depreciation of $56,900 that can be sold for $274,000, less a 4% sales commission. Alternatively, Felix Company can lease the equipment for 3 years for a total of $286,000, 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 $16,700 over the 3-year lease. a. Prepare a differential analysis on October 29 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
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