At January 1, 2021, Caf Med leased restaurant equipment from Crescent Corporation under a nin year lease agreement. The lease agreement specifies annual payments of $34,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 thereafter through 2028. Th equipment was acquired recently by Crescent at a cost of $261,000 (its fair value) and was expected to have a useful life of 12 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 $63,196.) Crescent seeks a 8% return on its lease investments. By this arrangement, the lease is deemed to be a finance lease. (FV 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. Round your intermediate calculations to the nearest whole dollar amount.) Required: 1. What will be the effect of the lease on Caf Med's earnings for the first year (ignore taxes)? (Enter decreases with negative sign.) 2. What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Caf Med (ignore taxes)? (For all requirements, round your intermediate calculations and final answers to the nearest whole dollar.) 1. Effect on earnings 2. Lease payable balance (end of year) Right-of-use asset balance (end of year) TABLE Future Value of $1 FV311+ 9.096 09 151 2014 23 3:39 2011 4:54 con 5:39 8.04 1101000 10100 103000 1300 101000LONSO 104000 1500 15000 10500 106000 102010103022 101010 10500 106000 107133 10010010920) 110350 110303 L12160 101010 104511011 1076 10927) 11087 120114117 11576334 1.19102 104000 1061361004 110301 12551 114753 11 1922 121551 1024 3105101 102 110408 114 115927 111769 131655 2461117038 3009 133033 7.016 107000 114190 1.22501 131050 1.40155 09 1.08000 116610 135971 136019 146933 109000 LIO 129503 141150 15116 10.08 11.09 11.04 110000 11000 112000 121000 12121012540 133100 136763 140193 146110 151607 157352 161051 150 1.7621 1.20000 14000 100 207360 24832 100153 0934 113616 117 11940512326 136532 0236 3401013734 11100 110 12001 1732 13159 160 140710 14500 006 1130 114 115 11667 131011 1.36852 140210 1476 1:33409 1961 1950 1200 1307 1.690 1.42331 148610 15503161909 10 11000 110054 11111008 3092 14000 140094155397 169 170014 14165) 50073 1.566 167710 771567041 160570 1331 207010 221061 1.59385 171819 $5091 1.9336 21450 20151247590 1. 1846 900 2.17189 2:35795 2.55804 27708 172015 196715 2152 236730 2.59374 1105 298591 3.5311 2992 315978 6.191N 74001 91010 116 117 134 131309136031153503623 1704 2003 2104 233164 25000 25312 115178 347855 12 13 14 13443576 151102 100101 11.79586 0131 2013023521 251817 2012 349545 107135 136 137 1698 166507 177230 200177 2012 2013 21 3000 4527 3126 12301409 119 1198 199 211009 2000 2.9371 1123 11110001 102 103 10172 167535 1598 2019 2027903 01721716248 1723 59 547357 18 099 15.07 810 n SOS 13 14 160471 2022 2023536 254033 100 101 1021123223301 2410 11 5 10 15 20 2018 2017 20544 104 165 175311000 1110215601560 2011 1912 241111 110 2017 30714 132031 7000 07 TH 1445 321411 3600333 3.5599 37 381611 5058 7014 17 3833700 ove plo 31 137 138 1 2014) 1350 700 HIT 10.01) 460013 2018 10.80317 35 100011 1371631 100 100 101 102 10300005097100 furt TABLE 2 Present Value of $1 51 PV = (1+1) 1204 1.09 1.34 2.046 2.596 3046 3.59 4046 4.59 3.09 35 7.016 3.046 9.09 10.04 11.09 20.046 1 0990100 98521098039 097501 0.97087 0.96611 096154095094 095236 091787 09046 093458 09259) 091743 0.90909090090 0.89256 0.33333 2008030 097066 096112 095181 0.94360 093351 0.92456 0.91571 0.90703 089345089000 0.87344 085734 014168 0.17615 051162 079719 069444 30.97059 0.95632 0.94232 092860 091514 090194 08190001769008038085161 03392 0.81630 0.79383 077218 075131 073119 071171 0.57870 4090093 0.9216 0.923850 90595 088819 017144 03540003858 083270 010722 0.79209 070290 0.73503 0.7050 06330106573 063552 04835 5 095147 0.92526 090573 0.13385016361 0.34197 002193 0.00245 0.7153 076513 0.74726 0.71299 0.68058 0.61993 06209205935 0.56743 0.40181 60.94205 0.91454 0.38797 0.56230 0.03748 0.81350 0.79031 0.76790 0.74622 0.72525 0.70496 0.66634 0.63017 0.59627 056447 0.33464 0.50663 0.33400 7 0,932 090101 017056 05412201309 0.78599075993 074 071001 061744 0.66506 062275 0.56149 054703051316 041106 0.45735 027905 10.32348 0.877 033949 0.82075 0741 075241 073069 070319 067634 0.65160 062741 0.53201 0.54027 00187 0.46651 0.4333 008073257 091434 014033676 050073 070012 0.73373 070259 0.67290 064461 061769 0.59190 0.54193 0.50035 046001 0.43410039092 0.36001 01931 10 0.00519016167 012015 071120 0.7409 0.70192 067556 06439 061991 0.5854) 05589050835 046319 042241 038554 0.35316 032197 016151 110.432.93 0.86436 1.76214 0.77343 0.69495 0.64958 0.616208.53466 0.55401 0.53649 47509 043831 0.38753 035049031728 0.22743 0.13459 12038745 013659 076508074156 070138 000171 067460 0.58960 055614 05759 042007041101 039711 0.35553 031863 0285 0.25666 011216 1 017666013403 0.77303 07254 060005 0.0190 060057 056427 053012 0.0156 0.4684041296 0.36770 0.33611328966 025751 022917 00946 14 030996 0757186.7071 06112 06177057748 03397 050507 047257 0.4233030.340460390350203023199 020462 007789 15 0 16135 070015024301 06901064116 0.0055526 051672 0461030479 0402 0.36345 031534 027454 033919 020900 010270 006191 1605312 0.700.77845 0.87362 0.62317 657671 4.5301 451104345 0.336 3373 029189 02417 0.217030218839 610312 8.05409 17001 0.7108 0.71416 065720 000502035730 051337 04731045630 40365 0.17136 031637 077077 033107 0.19784 0.10061 0.14564 004509 110.113602 0704910T0018 064117 0587390116 045 045300041552 038147 0.504 039586 0203 0.21199 017 01 011004 003756 190 0.7501 0050100253037029 0.5301004461 0.80 0.39573 0.3615 3011 0.27051 023171 019H00.16351 0137650 11611 0.03130 20 031954 0707067292 061077 055368 0.50257 046 041464 0.37 03477031180025 0.14 0.17341 01464 0.13403010167 0.02000 110.10 0.73156783938633755 43351 2007 2384 033441011834131 0.1056 1657 0.13513.11174 0.00156201114 34 07875 0.00034 012 657 0.499 009 D0120 0011001 0.6 0.6 0 1971 015770 01100 010153 000 00058 001258 377977 090009) 053019 0.47701042011201177) 02100267730333000.1103014003 0.11597 00373000101000100 076 07070.500 0.4700381601503100333 015040 01 000 000 000 000 000002 2014040511141000000 33001 0020309 010 01010 0100 01073) 000300304 00000000100 pl fur 0.7419310763301 4764 1933.3670 013338.70064 0.1341113131800318 0.0172 0.0004 003 0.00411 310134100054015061100011001100 011011 0164501210000057100025 0.00000035 03734030056 017 01 1400111000100100100116 0.0000 00153 000 000 TABLE 3 Future Value of an ordinary Annuity of 1 (141-1 PVA 101 57 1108 5.51 1109 os 2,098 12.01 10.6% 1 000000001 10000 00001 1.0000 15 2.35 3.04 3314 10000 1.0000 10000 10000 10000 2010 20156 3000 30250 2015020400 10101 30453301040758 30000 10021310 4265 3.1010 15 3.2010 35000 365 5:4163 2015 300 4282 3.4707 20500 31533 20556 1000 4303 10000 2.0000 31 43M 56371 7.09 10000 10000 20700 20000 32149 324 4439 45001 595015100 10.01 10000 21000 33100 46110 01051 12.045 10000 21200 1744 10000 21100 121 7097 2.0900 33701 5731 5947 2.2000 16.00 101C OVES 3 35250 4 610 162 SIT ( BE6 120159 6.3196 301 13377 44 101 8,613 6.7180 6181 4.07 130 33 44 1541413177797896) 1019 100 3600 1910 7381 198051132142 100 9.5411 97210 9825 75469545 101101 1010 11011111111011 100 100 100 110 1146 117 11.004112577 2153 7.3350 7.30 7.750 56500 9.2004 4072 1035 10336611071511433911 10 1395 14.1040 1510 139114 16720 10000 12.30 14.77 14931 FI OTROS Tras JOO 32.1504 stion 143815 103356 TEEP SORE 11 11.5 11343 1210 13 2018 13.1436 134 135 136 1100110412 413 41930 600 150218 15 30 14338 0151404 117 1111016633 17.11 177030 15450415165190 1200 167101 1891 19.10 15 16 17 18 1334 1913 18:59 121200236 30 741117 WICH 19116 116.60 375103 10313 INH100140 180 IT05183771 201407 301000 20 22934322 23350 2010 2002 27750 100 13 27151009 317735054 37.7797 DIE stion IS101 59 1950 150 30.2926 2.400 716151 JOSE Inces SIE BILEN TE HUN MELT SELU SLWET 341411 30143 LOC TOPLE 2.1.1 ** 26 ce 11119 111450 113014 100 1016412018 34147 1 14000 140 134144 2014 551 154 20117957 H3511133778712001605390 1901911947042778 3100 VETEM 25.6725 30 31 3005790 100 1697 1.100 101 300 DER DESOHE 100 SHO Soros DOLEST TOOLCHE OS TOP 5115 57284208 09 720 evenu PER 311001 18 planati SEO 111110 14.11 1.8363 33.7133 31 0.0011 TE 11 47 40561101575 316 180 000 374 105 106 107 1560 1470 14000 170014 7305 Lt further TABLE A Present Value of an ordinary Annuity of 51 1 PVA 1950160 OP 10 1901 1911 1910 1911 40 0.00003611 0.2154 1 20104277509 7171067301 381990 437971 51505 404 0.001 0.071 01 17 115911 64613 1030 2730179307101 3503 0950515346511 1991 7.016 LON 2.046 100 110 120 1001 090 091002900 0000 02 03 100003 70130 1.75011173554 171252 16900 15277 2.43357710 2233129 240 240724018121054 3.3721 33121373972 10981 1035 103 25873 10000 1000137007090.60478 290001 01971541631071) 3.6197 TE 47138801553 ICH BOTH 754 Sus IS LOS LOS TOOS 5600 4710 419410 1171 49953 20161145400305 SEN 2335471014 2013 6.87 673274953940321 14 77000 7.60100 2107 53000 31061 11090 7.72173751100 448591 342 3581 551995300125012954566071220561100015 102793971307664 3511764 1716 01511 399535 7100335701 5030 73000 YB 71001841165 1657 16503419147 30013 SCCL 10 POLECULES SANTA 10.30763 07111.141 . 1.7604 04 YA 1407 11110109071110 101170400 301 790 111213141711111 01 10649 1030374565 14 13000 1354301011 110 1093053 1050 10 55 1541 1150 110 120 121 11511111111071955 107 1007712310701 S6 CITE SALE 7.0 75300 16T) 41 149 70037876000 7642554 07306701461053 000 XR 10H + RHC ng HIYO COSTO 118 113 112 111 110 101 10:401161.105002313 1517314975974.72054 11550 100 100 1171230131501110111216307117119 0710010 1036305747746 16 17236 0 14333011111211131075541 HIT101111119 15 110 115674143330 131 130 120000 TL 10335600000000139736578 20180111011111101413130131111110011 hce OF SCISSSTE ove plar 11110 17 16 15 14 13 12 11 10 07071.33 101 11100 111 112 11 70 70 471741401445 2010 43 11000 1100 1984 furt TABLE 5 Future Value of an Annuity Due of $1 FVAD X (1+0) Li-400] WE 10 17 900 1001 1 6096 10000 10130 3.544 10510 21650 7.09 1000 1.044 10800 11.09 11100 10900 20.04 3000 159 2014 25 09 1010 101 100 101000010100 20121000110750200911003 30004090912163153532192 1010 4152301003563430916544163 3 S1505251041531715503 56110 11.046 11200 274 tot DIE 10500 21325 3101 45256 CE 316 6371 45811 309 7501 6133 4707 5.7169 23100 6410 51051 6716 26100 3636 6-41 180 7097 52278 105 333 ISIES 6335 0:5211 . SEO 7.1450 POOL 1615 7210 SO 9600 STOL 311313130 456.541465635 4.774 2010 13141307161 101 3800 1 3501 2516 2011 447071103014 10:40 1011 11000 10 110 111 116 117 1140 12464 1213 9.00 11 Free 100 10363 7.30 7460 19 10101 10.970 12110 171104 13971647 1140 100 170210 141929 14873 12 106594 12:3793 1.1610 14937 15 7320 17:31 TES ALESTI F C 13.1991 197909 3958 1104 46 Nas 13161 15.95 109591 18 SALT 196540 og! SE 1 1 1 1 1 1 1 1 2011 160 161 1110111 13 14 1531 140 160 1720 1721 1 110101018331911 1910 1911 111111 17600 1.1 10 0411119 SPER COPII SIE SIE tion 1 17.01 1106304953 2.550 3314 21.23 133 3511 270 1411 15. . 1671181111 1711 19200111 OTA 314081321160 226571336411 26950 tion WALHO HORTE TA 47494 58 1959 11011 M011 18 19 SA THERE 12001 110 JOS INTEREST Inces 10 1611430418361 36.16 11.11.2015, 1417 1604 13 1944 113 114 11414811 117 118 119 125576711 08563911011103 111010111141151704 177 178 449 19 hcene 2003 12.10450000 101 3955 16 PHP | | | 1221 ISMO ISSN 30 20 SEO evenue 30 TE ST planatic VILLE LO 30 further 1000 * NOLEG Present Value of an Annuity Due of $1 PVAD ,00) 0+) Lo 20 10000000000 1 100000 234 100000 192561 0101 000001 199616 10.05 110 12.018 100000 100000 100000 100000 100 100 119250 273554 2.7137 16005 2527 BSSA 3.04 404 SO 7.04 2016 201 10000 100000 100000 100000 100000 100000 1000000 100000 19014 195094910 1047RY 10000 192591 2014 2013 201267 211 20161228111021080320 2011 10104 177500 3211579.67101 16012337710 153129 471710 6710 4525 1393 45051545511 13171 43111343922 257040 2015 HOW 391230 11 40197 4101 HET LORE 315602 11 SER 119000 IOPE TOEF A LO 4107 4105 40175 350 409211 SSC re 8 43771 3150 301 11111 1030 7 74 041711 0301 615711 607 3995 37661 1975611 141 01103111454 69 6501 10 7710 14 2011 7347 70979 97110 101 1010110019 3020 701091133 HOS LEVEL LAD 3017 674661 47907905048 36941 348595153057301443355 571200171009 8840116761 41716 670370 610 00 GO ogs tion 11 1.630 1731441 110 3.91 711) 33376 31000 7.7100141 142 613 616 11 116 116111 10 10 10 10 10 1000155 119106410934 13198 7.01974930172040263377000 1225508 11011 1174 11 10100 100 100 101152832550 16073 7011624956 1907 5:49:17 1111111111112113111111110100010101110 35083 10336 742 574 1110010110011011111111110101010 2014 20161037 ZONE tion BLOG IN as of SIE Inces 18 0 0 0 12 125110 111 112 113 11 9.00 100 171717 1718 145 15500 1354118 119 120 113 114 115 100 37915 199 77950 115717 712 1 11011 1010 12 11 10 10110213335479 112101561520133333 1755 13 13 13 12 11 100 101 101101010 07 51309 13001 17617 1515733 133319 160 1360 10.60360 01 heelne OCTOMBRE 1 evenue 11.4 117351451 14.00 110 1140 10 11 12 planatio 13 3000612111333120 further