Cullumber Co. purchased a machine on January 1, 2021 for $3,000,000 for the express purpose of leasing it. The machine is expected to have a useful life of 5 years, with no salvage value, and to depreciate monthly in a straight line. On April 1, 2021, under a cancellable lease, Cullumber leased the machine to the Marigold Company for $770,000 per year for a 4-year period ending March 31, 2025. Cullumber incurred full maintenance and other related costs under the provisions of the $28,000 lease relating to the year ending December 31, 2021. Harley paid $770,000 to Maris on April 1, 2018. Assuming an operating lease, what should be the income before income taxes derived of this lease by Cullumber Co. for the year ended December 31, 2021? ?

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To calculate the income before income taxes derived from the lease by Cullumber Co we need to determ... View the full answer