Lease or Sell Bullwinkle Company owns equipment with a cost of $361,700 and accumulated depreciation of $52,600 that can be sold for $277,500, less a 4% sales commission. Alternatively, Bullwinkle Company can lease the equipment for three years for a total of $287,800, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Bullwinkle Company on the equipment would total $15,000 over the three year lease. a. Prepare a differential analysis on August 7 as to whether Bullwinkle Company should lease (Alternative 1) or sell (Alternative 2) the equipment. If required, use a minus sign to indicate a loss. Differential Analysis Lease Equipment (Alt. 1) or Sell Equipment (Alt. 2) G Revenues August 7 Lease Sell Equipment Equipment Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) Costs Profit (Loss) b. Should Bullwinkle Company lease (Alternative 1) or sell (Alternative 2) the equipment?