Lease or Sell Toccoa Company owns equipment with a cost of $700,000 and accumulated depreciation of $300,000 that can be sold for $340,000, less a 4% sales commission. Alternatively, Toccoa Company can lease the equipment for four years for a total of $300,000, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Toccoa Company on the equipment would total $44,000 over the four-year lease. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Prepare a differential analysis on October 29 as to whether Toccoa Company should lease (Alternative 1) or sell (Alternative 2) the equipment. Use a minus sign to indicate costs or negative differential effect on income. Differential Analysis Lease Equipment (Alt. 1) or Sell Equipment (Alt. 2) October 29 Lease Equipment (Alternative 1) Revenues 300,000 S Costs Profit (Loss) Sell Equipment Differential Effect on (Alternative 2) Income (Alternative 2) 340,000 $ -44,000 X Should Toccoa Company lease (Alternative 1) or sell (Alternative 2) the equipment? Sell the equipment