A lease agreement that qualifies as a finance lease calls for annual lease payments of $50,000 over a six-year lease term (also the assets useful life), with the first payment at January 1, the beginning of the lease. The interest rate is 5%. The lessors fiscal year is the calendar year. The lessor manufactured this asset at a cost of $235,000. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

What would be the increase in earnings that the lessor would report in its income statement for the year ended December 31, 2016 (ignore taxes)?

Pretax impact on income related to the lease:
Interest Revenue	10824
Sales Revenue	???
Cost of Goods Sold	???
Total Pretax impact on income