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Lease or Sell

Casper Company owns equipment with a cost of $$363,200$ and accumulated depreciation of $$53,200$ that can be sold for $$275,700,$ less a $5\%$ sales commission. Alternatively, Casper Company can lease the equipment for $3$ years for a total of $$289,000,$ at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Casper Company on the equipment would total $$15,000$ over the $3-$year lease.

a$.$ Prepare a differential analysis on October $29$ as to whether Casper Company should lease $($Alternative $1)$ or sell $($Alternative $2)$ the equipment. If required, use a minus sign to indicate a loss.

Differential Analysis

Lease Equipment $($Alt$.1)$ or Sell Equipment $($Alt$.2)$

October $29$

$\backslash$table$[[$Line Item Descriptior,$\backslash$table$[[$Lease$],[$Equipment$],[($Alternative $1)]],\backslash$table$[[$Sell$],[$Equipment$],[($Alternative $2]],\backslash$table$[[$Differential$],[$Effects$],[($Alternative $2]]],[$Revenues$,$$$,$$$,$$