14. On January 1, ABC signed a 25-year operating lease with annual payments of $30,000 beginning immediately. Appropriately discounted at 7%, the PV of lease payments is $374,080. The amortization expense accrued at the end of the first year is 15. ABC leased a building from XYZ. The present value of lease payments is $312,548, which is 100% of the asset's fair value. The useful life of the building is 26 years, and the lease term is 13 years. In year 1 of the lease, ABC's amortization expense is XYZ is lessor in a sales-type lease. The lessor acquired the asset for $783,500 and the present value of lease payments is $863,350. Selling profit is 16. 17. ABC acquired equipment in 2020. At the end of 2020, the equipment had a book value $450,000 and a tax basis $135,000. The difference will reverse equally over 2021-2023. Assume a tax rate of 22% for 2021 and 28% for 2022-2023. In 2021, ABC will reduce the deferred tax account by