Brief Exercise $15-8($Algo$)$ Operating lease; financial statement effects $[$L$015-4]$

At the beginning of its fiscal year, Lakeside Incorporated leased office space to LTT Corporation under a twelfth$-$year

operating lease agreement. The contract calls for quarterly rent payments of $$34,000$ each. The office building was

acquired by Lakeside at a cost of $$2\mathrm{.}9$ million and was expected to have a useful life of $25$ years with no residual value.

What will be the effect of the lease on LTT$\text{'}$s earnings for the first year $($ignore taxes$)?$

Note: Enter your answer rounded to the nearest whole dollar.

LTT

its earnings by