Matrix Construction Company is considering selling excess machinery with a book value of $392,400 (original cost of $503,100 less accumulated depreciation of $110,700) for $224,600 less a 4% brokerage commission. Alternatively, the machinery can be leased to another company for a total of $219,670 for five years, after which it is expected to have no residual value. During the period of the lease, Matrix Construction Companys costs of repairs, insurance, and property tax expenses are expected to be $12,404.

Prepare a differential analysis, dated May 25 to determine whether Matrix should lease (Alternative 1) or sell (Alternative 2) the machinery. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter 0. A colon (:) will automatically appear if required.

B. On the basis of the data presented, would it be advisable to lease or sell the machinery? Explain.