Keating Co. is considering disposing of equipment with a cost of $79,000 and accumulated depreciation of $55,300. Keating Co. can sell the equipment through a broker for $34,000, less a 6% broker commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $50,000. Keating will incur repair, insurance, and property tax expenses estimated at $11,000 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

a. $8,448

b. $10,560

c. $7,040

d. $4,928