Question: Brief Exercise 15-9 (Static) Operating lease; financial statement effects [LO15-4] At the beginning of its fiscal year, Lakeside incorporated leased office space to LTT Corporation

Brief Exercise 15-9 (Static) Operating lease; financial statement effects [LO15-4] At the beginning of its fiscal year, Lakeside incorporated leased office space to LTT Corporation under a seven-year operating lease agreement. The contract calls for quarterly rent payments of $25,000 each. The office bullding was acquired by Lakeside at a cost of $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

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