Sure-Bilt Construction Company is considering selling excess machinery with a book value of $283,400 (original cost of $401,500 less accumulated depreciation of $118,100) for $278,000, less a 5% brokerage commission. Alternatively, the machinery can be leased to another company for a total of $284,100 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 $24,500. 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 Lease Machinery Sell Machinery Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues 284,100 278,000 6,100 X Costs 24,500 X 13,900 X 10,600 Profit (loss) 259,600 264,100 -4,500 X Feedback Check My Work Subtract the lease costs from the lease revenues. Subtract the sell machinery costs from the sell machinery revenues. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2. 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 $