Rick Industries leased equipment to Lucid Company on January 1, 2023. Rick recorded the lease as sales-type lease at \$135,000, the present value of lease payments discounted at 10\%. The lease calls for ten annual lease payments of $20,000 due each January 1, with the first payment at January 1,2023, the beginning of the lease. The asset being leased cost Rick $110,000 to produce. Costs of $500 for legal fees for the lease execution were the responsibility of the lessor. The total increase in earnings (pretax) on Rick '2023 income statement would be: $37,000$11,500$35,000$36,000