Lease or Sell Bullwinkle Company owns equipment with a cost of $365,700 and accumulated depreciation of $55,100 that can be sold for $276,800, less a 5% sales commission. Alternatively, Bullwinkle Company can lease the equipment for three years for a total of $287,100, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Bullwinkle Company on the equipment would total $16,600 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) Lease Equipment August 7 Sell Equipment Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues $ Costs Profit (Loss) Feedback $ Check My Work Subtract the lease costs from the lease revenues. Subtract the sell equipment costs from the sell equipment revenues. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2. b. Should Bullwinkle Company lease (Alternative 1) or sell (Alternative 2) the equipment? Lease the equipment Feedback