Exercise $15-25($Static$)$ Lessor: sales$-$type lease; residual value effect on financial statements $[$LO$15-2,15-$

At January $1,2024.$ Cske Med lessed sestaurant equipment fom Crescent Corporation under a none$-$yen bease Agreement

The leake ing eemom specifos irnual paymorks of $$25,000$ begining Jarcuary $1,2024,$ the begincing of the iease, and on cach

Decemter $31$ thereatio: Itisugh $2031$

The equipmert was alquiteo fecumily ty Crexcent of a cost at $$180000$ its far vatuel and was expectod so nave a usoful life of

$12$ years aith no sathage vilue il ithe end of its ife

$$50995.$

Botr cal tho present value of the lease payments and itil the present untue of the residuat walue fie.. The res dual assect are

ncuded in the sase receivable bocaube the two amounts pomtane te wian the lebiser to recover is net investment.

Crescem seevs a $105$ renum on its case investmertis.

By this mangemnmt the loune is deemed $10$ be a $1$ nocce iense to the lessec.

Rnquirnat:

What will be ine effect of the lease on Crescenss eamiggs for the fibt year ligrore tavest?

Nate: Enger decreases with negmthe shgn

What wi be the tawances in the balante wheet accounts covited to the lease at the end of the frat yesr far Crewern lignere

tavest?