Keating Co. is considering disposing of equipment that cost $80,000 and has $56,000 of accumulated depreciation to date. Keating Co. can sell the equipment through a broker for $35,000 less a 7% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $49,000. Keating will incur repair, insurance, and property tax expenses estimated at $10,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential profit or loss from the sell alternative is a a. $9,675 profit b. $4,515 loss c. $7,740 profit d. $6,450 loss The rate of earnings is 6% and the cash to be received in 4 years is $33,562. The present value amount, using the following partial table of present value of $1 at compound interest is (round to two decimal points) Year 6% 10% 12% 1 0.943 0.909 0.893 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 a. $28,192.08 b. $22,922.85 c. $21,345.43 d. $26,581.10