Sloan Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,020. The freight and installation costs for the equipment are $640. If purchased, annual repairs and maintenance are estimated to be $390 per year over the four-year useful life of the equipment. Alternatively, Sloan can lease the equipment from a domestic supplier for $1,480 per year for four years, with no additional costs.

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Prepare a differential analysis dated December 3, to determine whether Sloan should lease (Alternative 1) or purchase (Alternative 2) the machine. (Hint: This is a "lease or buy" decision, which must be analyzed from the perspective of the machine user, as opposed to the machine owner.) If an amount is zero, enter "0". Use a minus sign to indicate a loss.

Differential Analysis Lease Equipment (Alt. 1) or Buy Equipment (Alt. 2) December 3

	Lease Equipment (Alternative 1)	Buy Equipment (Alternative 2)	Differential Effect on Income (Alternative 2)
Revenues	$fill in the blank a15f96fd304aff0_1	$fill in the blank a15f96fd304aff0_2	$fill in the blank a15f96fd304aff0_3
Costs:
Purchase price	$fill in the blank a15f96fd304aff0_4	$fill in the blank a15f96fd304aff0_5	$fill in the blank a15f96fd304aff0_6
Freight and installation	fill in the blank a15f96fd304aff0_7	fill in the blank a15f96fd304aff0_8	fill in the blank a15f96fd304aff0_9
Repair and maintenance (4 years)	fill in the blank a15f96fd304aff0_10	fill in the blank a15f96fd304aff0_11	fill in the blank a15f96fd304aff0_12
Lease (4 years)	fill in the blank a15f96fd304aff0_13	fill in the blank a15f96fd304aff0_14	fill in the blank a15f96fd304aff0_15
Income (loss)	$fill in the blank a15f96fd304aff0_16	$fill in the blank a15f96fd304aff0_17	$fill in the blank a15f96fd304aff0_18

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