Lease or Sell Decision Inman Industries is considering selling excess machinery with a book value of $278,800 (original cost of $398,500 less accumulated depreciation of $119,700) for $275,000 less a 6% brokerage commission. Alternatively, the machinery can be leased for a total of $286,500 for five years, after which it is expected to have no residual value. During the period of the lease, Inman Industries' costs of repairs, insurance, and property tax expenses are expected to be $25,100. 286,500 a. Prepare a differential analysis report for the lease or sell decision. INMAN INDUSTRIES Proposal to Lease or Sell Machinery Differential Analysis Report Differential revenue from alternatives: Revenue from lease Proceeds from sale Differential revenue from lease Differential cost of alternatives: Repairs Insurance and property tax expenses from lease Commission on sale 275.000 11,500 X Differential cost of lease od Net differential gain from lease alternative