Lease or Sell

Casper Company owns equipment with a cost of $$367,900$ and accumulated depreciation of $$52,100$ that can be sold for $$277,400,$ less a $3\%$ sales commission. Alternatively, Casper Company can lease the equipment for $3$ years for a total of $$285,400,$ at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Casper Company on the equipment would total $$15,500$ over the $3-$year lease.

a$.$ Prepare a differential analysis on October $29$ as to whether Casper 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$.2)$ october $29$

$\backslash$table$[[$Line Item Description,$\backslash$table$[[$Lease$],[$Equipmen$],[($Alternative$]],,\backslash$table$[[$Sell$],[$Equipmer$],[($Alternative$]],,\backslash$table$[[$Differenti$],[$Effects$],[($Alternative$]],],[$Revenues$,$$$,,$$$277,400,,$$$2277,400,$x$],[$Costs$,285,400,x,,,,x$