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  3. kincaid company owns equipment with a cost of $361

Kincaid Company owns equipment with a cost of $361,200 and accumulated depreciation of $56,700 that...

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Accounting

image Kincaid Company owns equipment with a cost of $361,200 and accumulated depreciation of $56,700 that can be sold for $273,500, less a 3% sales commission. Alternatively, Kincaid Company can lease the equipment for 3 years for a total of $286,900, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Kincaid Company on the equipment would total $16,900 over the 3 -year lease. a. Prepare a differential analysis on October 29 as to whether Kincaid Company should lease (Alternative 1 ) or sell (Alternative 2 ) the equipment. If required, use a minus sign to indicate a loss. b. Should Kincaid Company lease (Alternative 1 ) or sell (Alternative 2 ) the equipment

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