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A lease agreement that qualifies as a finance lease calls for annual lease payments of...

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Accounting

A lease agreement that qualifies as a finance lease calls for annual lease payments of $60,000 over a six-year lease term (also the assets useful life), with the first payment on January 1, the beginning of the lease. The interest rate is 7%. The lessors fiscal year is the calendar year. The lessor manufactured this asset at a cost of $280,000.
Required:
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)?

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