"Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments discounted at 10% was $81,100. Ten annual lease payments of $12,000 are due each year beginning July 1, 2021. Smith Co. had constructed the equipment recently for $66,000, and its retail fair value was $81,100.

i. The total decreased in earnings (pretax) in Karlas December 31, 2021, income statement would be (do not compute taxes): a. $5,000. b. 6,205. c. $7,510. d. $8,400. e. 9,000. f. 15,722. ii. What amount did Smith Co. record in its income statement for the reporting year ending December 31, 2021, in connection with the lease? (do not compute taxes) a. $3,455. b. 15,100. c. $18,555. d. $22,010. e. 17,200. f. 22,410."