Answer question

Foothills Industries leased equipment to Norman Company on January 1, 2023. Foothills recorded the lease as sales-type lease at $77,000, the present value of lease payments discounted at 9%. The lease calls for ten annual lease payments of $11,400 due each January 1, with the first payment at January 1, 2023, the beginning of the lease. The asset being leased cost Foothills $61,000 to produce. The total increase in earnings (pretax) on Foothills' 2023 income statement would be: $21,940 $5,940 $15,000 $22,930