EE $9-1$ p$\mathrm{.}369$ PE $9-1$A Lease or sell

Claxon Company owns a machine with a cost of $$305,000$ and accumulated depreciation of $$65,000$ that can be sold for $$262,000,$ less a $5\%$ sales commission. Alternatively, the machine can be leased by Claxon Company for three years for a total of $$272,000,$ at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Claxon Company on the machine would total $$21,600$ over the three years. Prepare a differential analysis on January $12$ as to whether Claxon Company should lease $($Alternative $1)$ or sell $($Alternative $2)$ the machine.