Lease or Sell Decision Sure-Bilt Industries is considering selling excess machinery with a book value of $279,500 (original cost of $401,000 less accumulated depreciation of $121,500) for $278,000 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, Sure-Bilt Industries' costs of repairs, insurance, and property tax expenses are expected to be $25,000. a. Prepare a differential analysis report for the lease or sell decision SURE-BILT 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 Differential cost of lease $ Net differential gain from lease alternative