Keating Co. is considering disposing of equipment with a cost of $64,000 and accumulated depreciation of $44,800. Keating Co. can sell the equipment through a broker for $27,000, less a 10% 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 $10,000 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.$10,990

b.$23,550

c.$15,700

d.$18,840