Astro Company owns equipment with a cost of $361,100 and accumulated depreciation of $53,800 that can be sold for $274,100, less a 3% sales commission. Alternatively, Astro Company can lease the equipment for three years for a total of $285,500, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Astro Company on the equipment would total $15,800 over the three year lease. Required:
Prepare a differential analysis on March 23 as to whether Bullwinkle Company should lease (Alternative 1) or sell (Alternative 2) the equipment.