At January 1, 2021. Rycker Corporation leased nonspecialized manufacturing equipment from Stone, Inc. under a nine-year lease agreement. The lease agreement specifies annual payments of $84,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 thereafter through 2028. The equipment was acquired recently by Stone at a cost of $567,300 (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 $39,600.) Stone seeks a 12% return on its lease Investments. By this arrangement, the lease is deemed to be a finance lease. (EV of $1. PV of $1. EVA of S1, PVA of $1. EVAD $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) Required: 1. What will be the effect of the lease on Rycker's earnings for the first year (ignore taxes)? (Enter decreases with negative numbers. Round your intermediate calculations and final answers to the nearest whole dollar.) 2. What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Rycker (ignore taxes)? (Round your intermediate calculations and final answers to the nearest whole dollar.) 1. 2. Effect on earnings Lease payable balance (end of year) Right-of use asset balance (end of year)