Brief Exercise $15-9($Algo$)$ Operating lease; financial statement effects $[$LO$15-4]$

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

agreement. The contract calls for quarterly rent payments of $$37,000$ each. The office building was acquired by Lakeside at a cost of

$$3\mathrm{.}2$ 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 Lakeside's earnings for the first year $($ignore taxes$)?$

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

Answer is complete but not entirely correct.At the beginning of its fiscal year, Lakeside Incorporated leased office space to LTT Corporation under a ten$-$year operating lease agreement. The contract calls for quarterly rent payments of $$37,000$ each. The office building was acquired by Lakeside at a cost of $$3\mathrm{.}2$ 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 Lakeside$$s earnings for the first year $($ignore taxes$)?$

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