On May $1,2023,$ Blossom Corp. leased equipment to Darwin Inc. for one year under an operating lease. Instead of leasing it$,$ Darwin

could have bought the equipment from Blossom for $$805000$ cash. At this time, Blossom's accounting records showed a book value

for the equipment of $$69800.$ Depreciation on the equipment in $2023$ was $$94000.$ During $2023,$ Darwin paid $$25500$ per month

rent to Blossom for the $8-$month period, and Blossom incurred maintenance and other related costs under the terms of the lease of

$$16500.$

The net income before income taxes reported by Blossom from this lease for the year ended December $31,2023,$ should be

$$187500.$

$$94000.$

$$93500.$

$$204000.$

Please do not use ChatGpt to answer and please explain the process. Thanks!