QUESTION 16 On January 1, 2018, Hook leased equipment to Terry Company for a three-year period, for $50,000 a year. The original cost of the equipment was 5320,000. The equipment is being depreciated on a straight line basis over a ten-year period with no salvage value. The lease is recorded as an operating lease. What is the amount that net income before taxes would increase or decrease by as a result of the above facts for the year ended December 31, 2018? Hook (lessor) A. $18,000 B. $18,000 C. $50,000 D. $50,000 OB Terry (lessee) $(50,000) $(82,000) $(50,000) $(82,000) D