Lease or Sell Felix Company owns equipment with a cost of $364,400 and accumulated depreciation of $56,500 that can be sold for $276,500, less a 3% sales commission. Alternatively, Felix Company can lease the equipment for three years for a total of $285,000, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Felix Company on the equipment would total $16,000 over the three year lease. a. Prepare a differential analysis on August 7 as to whether Felix 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) Revenues Costs Profit (Loss) Lease Equipment August 7 Sell Equipment Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) b. Should Felix Company lease (Alternative 1) or sell (Alternative 2) the equipment?