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Blossom Co, purchased a machine on January 1,2025, for $2,100,000 for the express purpose of leasing it. The machine is expected to have a five-vear

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Blossom Co, purchased a machine on January 1,2025, for $2,100,000 for the express purpose of leasing it. The machine is expected to have a five-vear life, no salvage value, and be depreciasted on a straight-line monthly basis On April 1.2025 . Ainswom leased the machine to Splish Compary for 5780,000 a year for a four-year period ending March 31, 2029. Blossom incurred total maintenance and other related costs under the provisions of the lease of $29,000 relating to the year ended December 31, 2025. Harler paid $780,000 to Blossom on April 1, 2025. (a) Assuming an operating lease, what should be the income before income taxes derived by Blossom Co. from this lease for the vear ended December 31,2025 ? Income before income taxes What should be the total amount of lease expense incurred by Splish from this leave for the vear ended December 31.2025 ? Lease expense

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