a.Prepare adifferential 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.

Sure-Bilt Construction Company is considering selling excess machinery with a book value of $276,500 (original cost of $398,500 less accumulated depreciation of $122,000) for $277,700, less a 5% brokerage commission. Alternatively, the machinery can be leased to another company for a total of $285,900 for five years, after which it is expected to have no residual value. During the period of the lease, Sure-Silt Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $25,100. 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 Costs V' | M- $ Profit (loss) b. 0n the basis of the data presented, would it be advisable to lease or sell the machinery? Explain. The net from selling is $