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At January 1, 2024, Cafe Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement - The lease agreement specifies annual payments of $30,000 begining January 1,2024 , the beginning of the lease, and on each December 31 thereafter through 2031 - The equipment was acquired recently by Crescent at a cost of $225,000 (ts fair value) and was expected to have a useful life of 12 years with no salvage value at the end of its life. - Becouse the lease term is only nine years, the asset does have an expected residual value at the end of the lease term of $127,481 - Both (a) the present value of the lease payments and (b) the present value of the residual value (le: the residual asset) are Included in the lease receivable because the two amounts combine to aliow the lessor to recover its net investment. - Crescent seeks a 12% return on its lease investments By this arrangement, the lease is deemed to be a finance lease to the lessee. Note: Use tables, Excel, or a financial calculator. (EV of S1, PV of S1. RVA of S1 PVA of S1, EVAD ol S1 and PVAD of S1) Required: 1. What will be the effect of the lease on Crescent's earnings for the first year fignore taxes)? Note: Enter decreases with negative sign. 2. What will be the balances in the balance sheet accounts related to the lease at the end of the first yeat for Crescent fignore (axes)

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