ng Computational Homewor Lease or Sell Toccoa Company owns equipment with a cost of $1,200,000 and accumulated depreciation of $990,000 that can be sold for $200,000, less a 5% sales commission. Alternatively, Toccoa Company can lease the equipment for 3 years for a total of $225,000, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Toccoa Company on the equipment would total $45,000 over the 3-year lease. a. Prepare a differential analysis on October 29 as to whether Toccoa Company should lease (Alternative 1) or sell (Alternative 2) the equipment. Differential Analysis Lease Equipment (Alt. 1) or Sell Equipment (Alt. 2) October 29 Lease Sell Line Item Description Equipment Equipment Revenues Costs Profit (Loss) Feedback Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) A A A B