Keating Co. is considering disposing of equipment with a cost of $62,000 and accumulated depreciation of $43,400. Keating Co. can sell the equipment through a broker for $29,000, less a 10% broker commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $45,000. 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

Keating Co. is considering disposing of equipment with a cost of $62,000 and accumulated depreciation of $43,400. Keating Co. can sell the equipment through a broker for $29,000, less a 10% broker commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $45,000. 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 O a. $16,350 O b. $13,080 Oc. $10,900 O d. $7,630