Lease or Sell Casper Company owns equipment with a cost of $364,900 and accumulated depreciation of $53,700 that can be sold for $274,800, less a 4% sales commission Alternatively, Casper Company can lease the equipment for three years for a total of $286,700, 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 $15,200 over the three year lease. a. Prepare a differential analysis on February 18, as to whether Casper 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 Differential Effect (Alternative 1) (Alternative 2) on Income (Alternative 2) Revenues Costs Income (Loss) Check My W 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 (1016) by subtracting alternativt 2 from alternative Learning objective 1 b. Should Casper Company lease (Alternative 1) or sell (Alternative 2) the equipment? Lease the equipment