What is conn's year 1 operating profit on this leased asset?

View Policies Current Attempt in Progress Conn Company purchased a new machine for $480,000 on January 1, Year 1, and leased it to East the same day. The machine has an estimated 12-year life and will be depreciated $40,000 per year. The lease is for a 3-year period expiring January 1, Year 4, at an annual rental of $85,000. What is Conn's Year 1 operating profit on this leased asset? O $45,000 O $40,000 O $85,000 O $55,000 ve for Later Attempts: 0 of 1 used Submit A