Assume that on June 22 of the current year, Emerson Company is considering leasing or selling of the following equipment: The cost of equipment was $200,000; the accumulated depreciation of the equipment is $110,000; and the book value of the equipment is $90,000. If the equipment is leased (Alternative 1), revenues for the one-year lease will be $160,000; total estimated repair, insurance, and property tax expense during the lease year would be $35,000; and the equipment would have no residual value at the end of the lease. If the equipment is sold, the sales price is $100,000; and the commission on the sale would be 5%. In Emerson's differential analysis, A) only the differential revenues and differential costs associated with the lease- or-sell decision are included in the differential analysis B) the $90,000 book value ($200,000 - $110,000) of the equipment is a sunk cost and is not considered in the differential analysis sunk costs are costs that have been incurred in the past, cannot be recouped, and are not relevant to future decisions; that is, the $90,000 is not affected regardless of which decision is made D) all of the above E) none of the above