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Bryant leased equipment that had a retall cash seling price of $800,000 and a useful iffe of five years with no residual value. The lessior
Bryant leased equipment that had a retall cash seling price of $800,000 and a useful iffe of five years with no residual value. The lessior spent $630,000 to manufacture the equipment and used an implict rate of 8% when calculating annual lease payments of $185,523 beginning January 1 , the beginning of the lease. Lease payments will be made January 1 each year of the lease. Incremental costs of consummating the lease transaction incurred by the lessor were $25,000. What is the effect of the lease on the lessor's earnings during the first year, not including any effect of deprectation no longer required on the asset under lease (ignore taxes)? Note: Input decreases to income as negative amounts
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