Jason Manufacturing Inc. uses leases as a means of selling its equipment. On January 1, the company leased a machine to Peter Inc. The cost of the machine to Jason was $85,000. The fair market value (which was the sales price) was $105,000 at the time of the lease. Annual lease payments are $14,000 and are payable in advance for 10 years. The implicit interest rate is 10%. At the end of the lease term, title to the machine will pass to Peter Inc.

(A)	Provide the entries required on Jason's books (lessor) to record the lease and the receipt of the first payment.
(B)	Compute the manufacturer's profit to be recognized by Jason in the first year of the lease.
(C)	Compute the total interest revenue on the lease.