Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

What will be the effect of the lease on Crescent's earnings for the first year $($ignore taxes$)?$

Note: Enter decreases with negative sign.

What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Crescent $($ignore

taxes$)?$

Effect on earnings

Lease receivable balance $($end of year$)$