Lease or Sell Ferrigno Company owns equipment with a cost of $362,800 and accumulated depreciation of $54,000 that can be sold for $275,300, less a 5% sales commission. Alternatively, Ferrigno Company can lease the equipment to another company for three years for a total of $285,100, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Ferrigno Company on the equipment would total $16,100 over the three years. Prepare a differential analysis on March 23 as to whether Ferrigno Company should lease (Alternative 1) or sell (Alternative 2) the equipment. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Lease Equipment (Alt. 1) or Sell Equipment (Alt. 2) March 23 LU10 Homework assignment take frame Lease Equipment (Alternative 1) (Alternative 2) Sell Equipment Differential Effect (Alternative 2) Revenues $ 285,100 $261,535 X Costs -16,100 -54,000 $ 23,565 X -37,900 X Profit (loss) 269,000 207,535 $ 61,465 x Feedback Check My Work Subtract the lease costs from the lease revenues. Subtract the sell equipment costs from the sell equipment revenue. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2. Should Ferrigno Company lease (Alternative 1) or sell (Alternative 2) the equipment? Lease the equipment