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Differential Analysis for a Lease-or-Sell Decision Sure-Bilt Construction Company is considering selling excess machinery with a book value of $278,400 (original cost of $398,600 less accumulated depreciation of $120,200) for $277,200, less a 5% brokerage commission. Alternatively, the machinery can be leased to another company for a total of $286,100 for five years, after which it is expected to have no residual value. During the period of the lease, Sure-Bilt Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $24,700. a. Prepare a differential analysis, dated May 25 to determine whether Sure-Bilt should least (Alternative 1) or sell (Alternative 2) the machinery. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Lease Machinery (Alt. 1) or Sell Machinery (Alt. 2) May 25 Differential Effect Lease Machinery Sell Machinery (Alternative 1) on Income (Alternative 2) (Alternative 2) Revenues Direct labor (6 years) 5 Income (Loss) Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)? Continue with the old machine Replace the old machine