Keating Co. is considering disposing of equipment with a cost of $71,000 and accumulated depreciation of $49,700. Keating Co. can sell the equipment through a broker for $33,000 less 8% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $47,000. 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 $4,648 39,960 57.968 $6,640