A lease agreement that qualifies as a finance lease calls for annual lease payments of $$30,000$ over a four$-$year lease term $($also the asset$$s useful life$),$ with the first payment on January $1,$ the beginning of the lease. The interest rate is $8\%.$ The lessor$$s fiscal year is the calendar year. The lessor manufactured this asset at a cost of $$100,000.$

Required:

Determine the price at which the lessor is $$selling$$ the asset $($present value of the lease payments$).$

Create a partial amortization table through the second payment on January $1,$ Year $2.$

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

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$