Lease or Sell Bullwinkle Company owns equipment with a cost of $363,700 and accumulated depreciation of $52,300 that can be sold for $277,400, es a 5% sales commission. Alternatively, Bulwinkle Company can lease the equipment for three years for a total of $286,100, 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 $15,700 over the three year lease. a. Prepare the equipment. For those boxes in which you must enter subtracted or negative numbers use a minus sign. a differential analysis on February 18, as to whether Bullwinkle Company should lease (Alternative 1) or sell( Differential Analysis Lease (Alt. 1) or Sell (Alt. 2) Equipment February 18 Differential Effect on Income (Alternative 2) 2) #77 4006-370 X 286,100 v Revenues Costs -15,700 -13,870 ( 075) 63 s30] v 263,530 270,400 Income (loss) $( 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 Learning Objective 1. alternative 1 b. Should Bullwinkle Company lease (Alternative 1) or sell (Alternative 2) the machine? Lease the machine Some updates could not be Reject Order (Alt. 1) or Accept Order (Alt. 2) Next