salvage value. It is to be depreciated on a straight$-$line basis. The machine was leased to Wildhorse Inc. for $3$ years on January $1,2025,$ with annual rent payments of $$300,000$ due at the beginning of each year, starting January $1,2025.$ The machine is expected to have a residual value at the end of the lease term of $$562,500,$ though this amount is unguaranteed.

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$($For calculation purposes, use $5$ decimal places as displayed in the factor table provided.$)$

$($a$)$

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How much should Windsor report as income before income tax on this lease for $2025?$

Income before income tax

$

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