Prepare a differential analysis on february

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Kincaid Company owns equipment with a cost of $365,400 and accumulated depreciation of $53,100 that can be sold for $273,300, less a 3% sales commission. Alternatively, Kincaid Company can lease the equipment for three years for a total of $285,700, 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 $16,400 over the three year lease.

Question 1: Prepare a differential analysis on February 18, as to whether Kincaid Company should lease (Alternative 1) or sell (Alternative 2) the equipment.

Question 2: Should Kincaid Company lease (Alternative 1) or sell (Alternative 2) the equipment?

Reference no: EM132547287

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