Kincaid Company owns equipment with a cost of $366,200 and accumulated depreciation of $52,200 that can be sold for $277,800, less a 5% sales commission. Alternatively, Kincaid Company can lease the equipment for three years for a total of $284,700, 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 $16,200 over the three year lease. Required:
Prepare a differential analysis on March 23 as to whether Casper Company should lease (Alternative 1) or sell (Alternative 2) the equipment.