At January $1,2024,$ Caf$$ Med leased restaurant equipment from Crescent Corporation under a nine$-$year lease agreement.

The lease agreement specifies annual payments of $$30,000$ 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 $$225,000($Its falr value$)$ and was expected to have a

useful life of $13$ years with no salvage value at the end of Its life. Crescent records depreclation using the straight$-$IIne

method.

Because the lease term Is only nine years, the asset does have an expected residual value at the end of the lease term

of $$127,481.$

Crescent seeks a $12\%$ return on Its lease Investments.

By this arrangement, the lease is deemed to be an operating lease.

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

Required:

What will be the effects of the lease on Crescent's $($lessor$\text{'}$s$)$ earnings for the first year $($Ignore taxes$)?$

Note: Enter decreases with negatlve sign.

What will be the balances In the balance sheet accounts related to the lease at the end of the first year for Crescent.

$($Ignore taxes$)?$

Note: For all requirements, round your Intermedate calculations to the nearest whole dollar amount.