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Company A leased equipment from Company B on July 1, 2021, in a sales-type lease. The present value of the lease payments discounted at 8%

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Company A leased equipment from Company B on July 1, 2021, in a sales-type lease. The present value of the lease payments discounted at 8% was 60,000. Eight annual lease payments of $9,700 are due each July 1, beginning July 1, 2021. The total decrease in earnings (pretax) in Company A's December 31, 2021, income statement would be: O $11,542 $6,150 $5,762 $9.700

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