Keating Co. is considering disposing of equipment with a cost of $57,000 and accumulated depreciation of $39,900. Keating Co. can sell the equipment through a broker for $34,000, less a 5% 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 $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.$3,240

b.$1,890

c.$4,050

d.$2,700