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Help Save & Bled leased equipment that had a retall cash selling price of $1,200,000 and a useful life of five years with no residual
Help Save & Bled leased equipment that had a retall cash selling price of $1,200,000 and a useful life of five years with no residual value. The lessor paid $1,050.000 to acquire the equipment and used an implicit rate of 8% when calculating annual lease payments of $278.284 beginning January 1 at the beginning of the lease. Incremental costs of negotiating and consummating the completed lease transaction incurred by the lessor were $30,000. What is the increase in the lessor's earnings during the first year as a result of the lease ignore taxes)? (Round your answer to the nearest whole dollar amount.) Multiple Choice Decrease in earnings by S164 839 Increase in earning by Sin 242 Decrease in carings by $17.625 Increase in carrings by 5183732
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