The following relate to an operating lease agreement for Ava Company the lessor:

1. The lease term is 3 years, beginning January 1, 2018.
2. The leased asset cost the lessor $267,600 and had a useful life of twelve years with no residual value. The lessor uses straight-line depreciation for its depreciable assets.
3. Annual lease payments at the beginning of each year were $34,190.
4. Incremental costs of negotiating costs of negotiating and consummating the completed lease transaction incurred by the lessor were $5,730

What is the net income Ava will recognize the 1^st year of these lease?