TSLA Enterprises leased equipment on January $1,2024,$ resulting in a right$-$of$-$use asset of $$1,600,000.$ The lease term and the life of the leased equipment were both $10$ years. The lessor charged interest of $8\%.$

Two years later, on December $31,2025,$ the balance in the right$-$of$-$use asset will be:

JARG Ltd$.$ leased equipment from James Company on July $1,2024,$ in a finance lease. The present value of the lease payments discounted at $12\%$ was $$60,100.$ Ten annual lease payments of $$9,500$ are due each year beginning July $1,2024.$ James Company had constructed the equipment recently for $$51,500,$ and its retail fair value was $$60,100.$

The total decrease in earnings $($pretax$)$ reported in JARG's income statement for the year ended December $31,2024,$ would be $($ignore taxes$)$: