Sure-Bilt Construction Company is considering selling excess machinery with a book value of $279,000 (original cost of $400,900 less accumulated depreciation of $121,900) for $278,000, less a 5% brokerage commission. Alternatively, the machinery can be leased to another company for a total of $283,800 for five years, after which it is expected to have no residual value. During the period of the lease, Sure-Bilt Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $26,400. a. Prepare a differential analysis, dated May 25 to determine whether Sure-Bilt should lease (Alternative 1) or sell (Alternative 2) the machinery. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Lease Machinery (Alt. 1) or Sell Machinery (Alt. 2) May 25 Differential Effect Lease Machinery Sell Machinery on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues $ 283,800 $ 278,000 5,800 x Costs 26,400 13,900 X 12,500 Income (Loss) $257,400 264,100 -6,700 X b. On the basis of the data presented, would it be advisable to lease or sell the machinery? Explain. Sell the machinery The net gain from selling is $264,100 X