Maris Co. purchased a machine on January 1, 2015, for $1,499,900 for the express purpose of leasing it. The machine is expected to have a 4-year life, no salvage value, and be depreciated on a straight-line monthly basis. On April 1, 2015, under a cancelable lease, Maris leased the machine to Dunbar Company for $450,800 a year for a 2-year period ending March 31, 2019. Maris incurred total maintenance and other related costs under the provisions of the lease of $16,000 relating to the year ended December 31, 2015. Harley paid $450,800 to Maris on April 1, 2015.

Under the operating method, what should be the income before income taxes derived by Maris Co. from this lease for the year ended December 31, 2015?

Income before income taxes $ _____________

What should be the amount of rent expense incurred by Dunbar from this lease for the year ended December 31, 2015?

Rent expense $ ______________