Saved Help Save & Eat Submit LeaseCo Industries leased equipment to UserCorp. on July...

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LeaseCo Industries leased equipment to UserCorp. on July 1,2018. LeaseCo recorded the lease as a sales-type lease at $900.000, the present value of lease payments discounted at 10%. The lease called for ten annual lease payments of $150,000 due each July 1. The first payment was received on July 1,2018. LeaseCo had manufactured the equipment at a cost of $680,000. What is the total increase in earnings (pretax) on LeaseCo's December 31,2018, income statement?
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$154,000
$257,500
$157.500
$195.000
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