Differential Analysis for a Lease-or-Sell Decision Sure-Bit Construction Company is-considering selling excess machinery with a book value of $281,800 (original cost of $400,800 less accumulated depreciation of $119,000) for $274,200, less a 5% brokerage commission. Alternatively, the machinery can be leased to another company for a totat of $285,000 for five years, after which it is expected to have no residual value, During the period of the lease, Sure-Biit Construction Company's costs of repairs, insurance, and property tax expenses a expected to be $24,600. a. Prepare a differential analysis, dated May 25 to determine whether Sure-Bilt should lease (Aiternative 1) or sell (Alternative 2) the machinery. For those boxes in which you must enter subtracted or negative numbers use a minus sign. redect FCina My wirk Subtract the lease costs from the lease revenues. Subtract the sell machinery costs from the sell machinery revenues. Dotermine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from aternative 2. b. On the basis of the data presented, would it be advisable to lease or sell the machinery? Explain. b. On the basis of the data presented, would it be advisable to lease or sell the machinery? Explain. The net from selling is Fetsoach r conecky win Subtract the lease costs from the lease revenues. Subtract the sell machinery costs from the sell machinery revenues. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2 . r check Mor wok Partialy comect Differential Analysis for a Lease-or-Sell Decision Sure-Bit Construction Company is-considering selling excess machinery with a book value of $281,800 (original cost of $400,800 less accumulated depreciation of $119,000) for $274,200, less a 5% brokerage commission. Alternatively, the machinery can be leased to another company for a totat of $285,000 for five years, after which it is expected to have no residual value, During the period of the lease, Sure-Biit Construction Company's costs of repairs, insurance, and property tax expenses a expected to be $24,600. a. Prepare a differential analysis, dated May 25 to determine whether Sure-Bilt should lease (Aiternative 1) or sell (Alternative 2) the machinery. For those boxes in which you must enter subtracted or negative numbers use a minus sign. redect FCina My wirk Subtract the lease costs from the lease revenues. Subtract the sell machinery costs from the sell machinery revenues. Dotermine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from aternative 2. b. On the basis of the data presented, would it be advisable to lease or sell the machinery? Explain. b. On the basis of the data presented, would it be advisable to lease or sell the machinery? Explain. The net from selling is Fetsoach r conecky win Subtract the lease costs from the lease revenues. Subtract the sell machinery costs from the sell machinery revenues. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2 . r check Mor wok Partialy comect