A. January 1, 2024, Cafe Med leased restaurant equlpment from Crescent Corporation under a nineyear lease agreement. - The lease agreement specifies annual payments of $20,000 beginning January 1, 2024. the beginning of the lease, and on each December 31 thereafter through 2031. - The equipment was acquired recently by Crescent at a cost of $171,000 (its fair value) and was expected to have a useful life of 12 years with no salvage value at the end of its life. - Because the lease term is only nine years, the asset does have an expected residual value at the end of the lease term of $72,098 - Both (a) the present value of the lease payments and (b) the present value of the residuar value fie., the residual assetj are Included in the lease recelvable because the two amounts combine to allow the lessor to recover its net investment - Crescent seeks a 8% return on its lease investments. By thls arrongement, the lease is deemed to be a finance lease to the lessee: Note: Use tables, Excel, or a financial calculator, (FV of 51. PV of \$1, EVA of S1, PVA or S1, EVAD or S1 and PVAD of S1) Required: 1. What wil be the effect of the lease on Crescent's eamings fot the first year (ignore taxes)? Note: Enter decreases with negative sign. 2. What wil be the balances in the balonce sheet accounts related to the lease at the end of the first year for crescent pgnore taxes)