On May 1, 2023, Carla Vista Corp. leased equipment to Darwin Inc. for one year under an operating lease. Instead of leasing it, Darwin could have bought the equipment from Carla Vista for $805000 cash. At this time, Carla Vista's accounting records showed a book value for the equipment of $704000. Depreciation on the equipment in 2023 was $88000. During 2023, Darwin paid $23500 per month rent to Carla Vista for the 8 -month period, and Carla Vista incurred maintenance and other related costs under the terms of the lease of $17000. The pre-tax expense reported by Darwin from this lease for the year ended December 31,2023 , should be $83000.$188000$171000$88000