Lease or sell

Kincaid Company owns equipment with a cost of $$365,700$ and accumulated depreciation of $$53,700$ that can be sold for $$274,900,$ less a $5\%$ sales commission. Alternatively, Kincaid Company can lease the equipment for $3$ years for a total of $$288,200,$ 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 $$15,500$ over the $3-$year lease.

a$.$ Prepare a differential analysis on October $29$ as to whether Kincaid Company should lease $($Alternative $1)$ or sell $($Alternative

the equipment. If required, use a minus sign to indicate a loss.

Differential Analysis

Lease Equipment $($Alt$.1)$ or Sell Equipment $($Alt$.2)$

$\backslash$table$[[$Line Item Description,$\backslash$table$[[$Lease$],[$Equipment$],[($Alternative $1]],\backslash$table$[[$Sell$],[$Equipment$],[($Alternative $2$