Exercise $15-14($Algo$)$ Lessor; operating lease; effect on financial statements $[$LO $15-4]$

At January $1,2024,$ Caf$$ Med leased restaurant equipment from Crescent Corporation under a nine$-$year lease agreement.

The lease agreement specifies annual payments of $$21,000$ beginning 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 $$180,000($its fair value$)$ and was expected to have a useful life of $13$ years with no salvage value at the end of its life. Crescent records depreciation using the straight$-$line method.

Because the lease term is only nine years, the asset does have an expected residual value at the end of the lease term of $$76,604.$

Crescent seeks a $8\%$ return on its lease investments.

By this arrangement, the lease is deemed to be an operating lease.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

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

Note: Enter decreases with negative sign.

What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Crescent $($ignore taxes$)?$

Note: For all requirements, round your intermediate calculations to the nearest whole dollar amount.

$\backslash$table$[[1.$ Effect on earnings,$],[2.$ Equipment balance $($net$,$ end of year$),],[2.$ Deferred lease revenue,$]]$