Lease or Sell Astro Company owns equipment with a cost of $364,900 and accumulated depreciation of $55,100 that can be sold for $276,500, less a 4% sales commission. Alternatively, Astro Company can lease the equipment for three years for a total of $284,400, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Astro Company on the equipment would total $15,400 over the three year lease. a. Prepare a differential analysis on February 18, as to whether Astro Company should lease (Alternative 1) or sell (Alternative 2) the equipment. Differential Analysis Lease (Alt. 1) or Sell (Alt. 2) Equipment February 18 Lease Equipment Sell Equipment (Alternative 1) Revenues 284,400 (Alternative 2) 276,500 Differential Effect on Income (Alternative 2) Costs Income (Loss) -15,400 Check My Work Subtract the lease costs from the lease revenues. Subtract the sell machine costs from the sell machine revenues. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 2 from alternative 1. Learning Objective 1. b. Should Astro Company lease (Alternative 1) or sell (Alternative 2) the equipment? Lease the equipment