I want to know how to do part C with an explination, please. Thank you for the help!

On January 1, 2024, Burnto Bir's leased restaurant equipment from Oval Corporation under a nine-year lease agreement The lease agreement specifies annual payments of $75,000 beginning January 1, 2024, the beginning of the lease, and at edeci Decentiber 31 thereafter through 2028. The equipment was acquired recently by Oval at a cost of $540,000 (its falir value) and was expected to have a useful ife of 13 years with no salvage value at the end of its life. (Because the lease term is only 9 years, the asset does have an expected residual value at the end of the lease term of $150.000 ) Oval seeks a 10% return on its lease investrments. 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 S1. FVA of S1. PVA of S1, FVAD of S1 and PVAD or S1) Required: a. What will be the effect of the lease on Burrito Birls earnings for the first year? (ignore toxes) b. What journal entries will the lessee record during 2024 relating to this lease? c. What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Burrito Burs? pignore taxes) Complete this question by entering your answers in the tabs below. What will be the effect of the lease on Burrito Bill's earnings for the first year? (ignore taxes) Note: Enter any decreases with a minus sign