At January 1, 2018, Apricot leased restaurant equipment from Anderson Corporation under a six-year lease agreement in a finance lease. The lease agreement specifies annual payments of $20,000 beginning January 1, 2018, the beginning of the lease, and at each December 31 thereafter through 2022. The equipment was acquired recently by Anderson at a cost of $105,000 (its fair value) and was expected to have a useful life of eight years with no salvage value at the end of its life. (Because the lease term is only six years, the asset does have an expected residual value at the end of the lease term of $8,166, which is unguaranteed by Apricot.) Anderson seeks an 8% return on its lease investments. The total decrease in earnings (pretax) in Apricot December 31, 2018, income statement would be:

a. $15,675 b. $18,542 c. $20,243 d. $23,030