JUILA 12. 202, Question 13 View Policies Current Attempt in Progress Crane Co. bought equipment and immediately leased it to Riggs Company on May 1, 2021. At that time the collectibility of the lease payments was not probable. The lease expires on May 1, 2022. Riggs could have bought the equipment from Crane for $5000000 instead of leasing it. Crane's accounting records showed a book value for the equipment on May 1, 2021, of $4250000. Crane's depreciation on the equipment in 2021 was $590000. During 2021, Riggs paid $948000 in rentals to Crane for the 8-month period. Crane incurred maintenance and other related costs under the terms of the lease of $105000 in 2021. After the lease with Riggs expires, Crane will lease the equipment to another company for two years. The income before income taxes derived by Crane from this lease for the year ended December 31, 2021, should be $253000 $1075000 $590000 $948000