On January $1,2024,$ Gem Finder leased mining equipment from Emerald Corporation under a nine$-$year lease agreement. The lease agreement specifies annual payments of $$75,000$ beginning January $1,2024,$ the beginning of the lease, and at each December $31$ thereafter through $2030.$ The equipment was acquired recently by Emerald at a cost of $$540,000($its fair value$)$ and was expected to have a useful life of $12$ years with no salvage value at the end of its life. $($Because the lease term is only $9$ years, the asset does have an expected residual value at the end of the lease term of $$152,983.).$ Both $($a$)$ the present value of the lease payments and $($b$)$ the present value of the residual value $($i$.$e$.,$ the residual asset$)$ are included in the lease receivable because the two amounts combine to allow the lessor to recover its net investment. Emerald seeks a $10\%$ return on its lease investments.

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

What will be the balance$($s$)$ in the balance sheet account$($s$)$ related to the lease at the end of the first year for Emerald $($ignore taxes$)?$By this arrangeme

$1.$ Effect on earnings:$\_\_\_\_\_\_\_\_\_\_$

$2.$ Lease Receivable balance $($end$-$of$-$year$)$:$\_\_\_\_\_\_\_\_\_\_\_\_$