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Lease or Sell Kincaid Company owns a equipment with a cost of $362,100 and accumulated depreciation of $54,900 that can be sold for $275,500, less

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Lease or Sell Kincaid Company owns a equipment with a cost of $362,100 and accumulated depreciation of $54,900 that can be sold for $275,500, less a 3% sales commission. Alternatively, Kincaid Company can lease the equipment to another company 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 Kincaid Company on the equipment would total $15,800 over the three years. Prepare a differential analysis on March 23 as to whether Kincaid 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 (AIt. 2) March 23 Lease Equipment Sell Equipment Alternative 1) Alternative 2)eome on Income (Alternative 2) Revenues Costs Income (Loss) Should Kincaid Company lease (Alternative 1) or sell (Alternative 2) the equipment? Discontinue a Segment Product A has revenue of $194,000, variable cost of goods sold of $115,200, variable selling expenses of $32,400, and fixed costs of $61,200, creating a loss from operations of $14,800. Prepare a differential analysis as of May 9, to determine whether Product A should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "O". For those boxes in which you must enter subtracted or negative numbers usea minus sign. Differential Analysis Continue Product A (Alt. 1) or Discontinue Product A (Alt. 2) May 9 Differential Effect Continue Product A (Alternative 1) Discontinue Product A (Alternative 2) (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling expenses Fixed costs Income (Loss) Determine if Product A should be continued (Alternative 1) or discontinued (Alternative 2)

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