Leto Inc. is considering leasing or disposing of the following equipment: Cost of equipment Less accumulated depreciation Book value $300,000 (200,000) $100,000 Lease option: Total revenue for five-year lease $200,000 Total estimated repair, insurance, and property tax expenses during life of lease Residual value at end of fifth year of lease 258,000 0 Sell option: Sales price Commission on sales Calculate the differential revenue from the lease alternative. $122,000 7%