On December 31, 2021, Perry Corporation leased equipment to Admiral Company for a five-year period. The annual lease payment, excluding non lease components, is $43,000. The interest rate for this lease is 13%. The payments are due on December 31 of each year. The first payment was made on December 31, 2021. The normal cash price for this type of equipment is $160,000 while the cost to Perry was $134,000. 

For the year ended December 31, 2021, by what amount will Perry's earnings increase due to this lease (Ignore taxes)?

Answer rating: 100% (QA)

The lease started on Dec 312021 First Lease paymnet made on Dec 3120... View the full answer