At January $1,2021,$ Caf$$ Med leased restaurant equipment from Crescent Corporation under a nine$-$year lease agreement. The lease agreement specifies annual payments of $$29,000$ beginning January $1,2021,$ the beginning of the lease, and at each December $31$ thereafter through $2028.$ The equipment was acquired recently by Crescent at a cost of $$216,000($its fair value$)$ and was expected to have a useful life of $13$ years with no salvage value at the end of its life. $($Because the lease term is only $9$ years, the asset does have an expected residual value at the end of the lease term of $$76,131.$ Crescent seeks a $10\%$ return on its lease investments. By this arrangement, the lease is deemed to be an operating lease. $($EV 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.$)$

$1.$ Effect on earnings

$2$a$.$ Lease Payable balance $($end of year$)$

$2$b$.$ Right of use asset balance $($end of year$)$