Keating Co$.$ is considering disposing of equipment that cost $$50,000$ and has $$40,000$ of accumulated depreciation to date. Keating Co$.$ can sell the equipment through a broker for $$25,000$ less $5\%$ commission. Alternatively, Gunner Co$.$ has offered to lease the equipment for five years for a total of $$48,750.$ Keating will incur repair, insurance, and property tax expenses estimated at $$8,000$ over the five$-$year period. At lease$-$end, the equipment is expected to have no residual value. The net differential income from the lease alternative is

$$17,000$

$$27,000$

$$14,500$

$$7,000$