Smith's Co. is considering selling one of its smaller trucks that is no longer needed in the business. The truck originally cost $60,000 and has accumulated depreciation of $40,000. The truck can be sold for $10,000. Another company is interested in leasing the truck. It will pay $4,000 per year for three years. Simply Supply Co. will continue to pay the taxes and license fees for the truck, but all other expenses will be paid by the lessee. Simply Supply Co. assumes the expenses for the taxes and license will be $500 per year for the three years. There is a 10% commission expense on the sale of the truck. *Show your work for each calculation, you need to answer all four questions.

Please complete your answers using a dollar sign and cents. For example $25.40

What is the differential revenue for leasing the truck?

What is the differential cost for leasingthe truck?

What is the differential income or (loss) for leasing the truck?

Should I lease the truck? Yes or No