Please help with number 1 and the second part of 2.

At January 1: 2018, Caf Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease agreement specifies annual payments of $28,000 beginning January 1, 2018, the beginning of the lease, and at each December 31 thereafter through 2025. The equipment was acquired recently by Crescent at a cost of $207000 (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 $69,847) Crescent seeks a 10% return on its lease investments. By this arrangement, the lease is deemed to be a finance lease. (FV of $1. PV of $1. EVA of $1. PVA.of $1. EVAD of S1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations to the nearest whole dollar amount.) Required: 1. What will be the effect of the lease on Caf Med's earnings for the first year (ignore taxes)? (Enter decreases with negatife numbers.) 2 What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Caf Med (ignore taxes)? 3 Answer is complete but not entirely correct. 1. Effect on eanings 2 Lease payable balance (end of year) $ (28,000) $136,316 Right-of-use asset balance (end of $ 159,941 e year)