Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments discounted at 11% was $58,800. Ten annual lease payments of $9,000 are due each year beginning July 1, 2021. Smith Co. had constructed the equipment recently for $52,000, and its retail fair value was $58,800. What amount did Smith Co. record in its income statement for the reporting year ending December 31, 2021, in connection with the lease? (ignore taxes.)