On December 31, 2021, Perry Corporation leased equipment to Admiral Company for a five-year period. The annual lease payment, excluding non-lease components, is $46,000. The interest rate for this lease is 12%. The payments are due on December 31 of each year. The first payment was made on December 31, 2021. The normal cash price for this type of equipment is $155,000 while the cost to Perry was $129,000. For the year ended December 31, 2021, by what amount will Perry's earnings increase due to this lease (ignore taxes)?

a) 36,000

b) 39,000

c) 26,000

d) 16,000