JARG Ltd$.$ leased equipment from James Company on July $1,2024,$ in a finance lease The present value of the lease payments discounted at $12\%$ was $$60,100.$ Ten annual lease payments of $$9,500$ are due each year beginning July $1,2024.$ James Company had constructed the equipment recently for $$51,500,$ and its retail fair value was $$60,100.$

The total decrease in earnings $($pretax$)$ reported in JARC's income statement for the year ended December $31,2024,$ would be $($ignore taxes$)$: