McFadden Company owns equipment with a cost of $$475,000$ and accumulated depreciation of $$280,000$ that can be sold for $$175,000,$ less a $7\%$ sales commission. Alternatively, McFadden Company can lease the equipment for four years for a total of $$180,000,$ at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by McFadden Company on the equipment would total $$35,500$ over the four$-$year lease.

Required:

Prepare a differential analysis on February $18$ as to whether McFadden Company should lease $($Alternative $1)$ or sell $($Alternative $2)$ the equipment. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

$2.$ Should McFadden Company lease $($Alternative $1)$ or sell $($Alternative $2)$ the equipment?