LeaseCo Industries leased equipment to UserCorp. on July $1,2018.$ LeaseCo recorded the lease as a sales$-$type lease at $$900,000,$ the present value of lease payments discounted at $10\%.$ The lease called for ten annual lease payments of $$150,000$ due each July $1.$ The first payment was received on July $1,2018.$ LeaseCo had manufactured the equipment at a cost of $$790,000.$

What is the total increase in earnings $($pretax$)$ on LeaseCo$$s December $31,2018,$ income statement?

Multiple Choice

$$157,500$

$$154,000$

$$147,500$

$$195,000$