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Lease or SellBullwinkle Company owns equipment with a cost of $ 3 6 3 , 7 0 0 and accumulated depreciation of $ 5 3

Lease or SellBullwinkle Company owns equipment with a cost of $363,700 and accumulated depreciation of $53,600 that can be sold for $273,600, less a 5% sales commission. Alternatively, Bullwinkle Company can lease the equipment for three years for a total of $287,700, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Bullwinkle Company on the equipment would total $16,600 over the three year lease.Question Content Areaa.Prepare adifferential analysison August 7 as to whether Bullwinkle Company should lease (Alternative 1) or sell (Alternative 2) the equipment. If required, use a minus sign to indicate a loss.

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