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Lease or sell Kincaid Company owns equipment with a cost of $365,700 and accumulated...

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Accounting

Lease or sell
Kincaid Company owns equipment with a cost of $365,700 and accumulated depreciation of $53,700 that can be sold for $274,900, less a 5% sales commission. Alternatively, Kincaid Company can lease the equipment for 3 years for a total of $288,200, 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 $15,500 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
the equipment. If required, use a minus sign to indicate a loss.
Differential Analysis
Lease Equipment (Alt.1) or Sell Equipment (Alt.2)
\table[[Line Item Description,\table[[Lease],[Equipment],[(Alternative 1]],\table[[Sell],[Equipment],[(Alternative 2
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