Keating Co. is considering disposing of equipment with a cost of $61,000 and accumulated depreciation of $42,700. Keating Co. can sell the equipment through a broker for $35,000 less 6% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $49,000. Keating will incur repair, insurance, and property tax expenses estimated at $9,000 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

$4,970

$8,520

$10,650

$7,100