not -30,000 either.

Exercise 15-14 Lessor; operating lease: effect on financial statements [LO 15-4] At January 1, 2018, Caf Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The l agreement specifies annual payments of $30000 beginning January 1, 2018, the beginning of the lease, and at each December 31 thereafter through 2025. The equipment was acquired recently by Crescent at a cost of $225,000 (its foir value) and was expected to have a useful life of 13 years with no salvage value at the end of its life (Becouse the lease term is only 9 years, the asset does have an expected residuo value tthe end of the lease term of S127481 Crescent seeks a 12% return on its lease investments By this arrangement, the lease is deemed to be an operating lease (EV of St PV of S1. EVA of $1 PVA of S1, FVAD of $t ond PVAD of So (Use eppropriste fectorts) from the tables provided.) Required: 1. Whet will be the effect of the lease on Crescent's (lessors) earnings for the first year? (Enter decreases with negative numbers.) 2. What wil be the balances in the bolance sheet accounts related to the leose at the end of the first year for Crescent? (For all requirements, round your intermediete calculations to the nearest whole dollar amount.) 1Effect on earnings 2 S 30,000 Is 146,053 176053 Equipment balance (net end ot year) Deferred lease revenue