Sales-type lease; lessor; income statement effects

A lease agreement that qualifies as a finance lease calls for annual lease payments of $24,000 over a four-year lease term (also the assets useful life), with the first payment on January 1, the beginning of the lease. The interest rate is 5%. The lessors fiscal year is the calendar year. The lessor manufactured this asset at a cost of $75,000.

Required:

1. Determine the price at which the lessor is selling the asset (present value of the lease payments).
2. Create a partial amortization table through the second payment on January 1, Year 2.
3. What would be the increase in earnings that the lessor would report in its income statement for the first year ended December 31 (ignore taxes; hint: gain from sale-type of lease and interest revenue earned)?