Bird leased equipment that had a retail cash selling price of $1,403,000 and a useful life of five years with no residual value. The lessor paid $1,277,000 to acquire the equipment and used an implicit rate of 6% when calculating annual lease payments of $272,000 beginning January 1, at the beginning of the lease. Incremental costs of negotiating and consummating the completed lease transaction incurred by the lessor were $10,200. What is the effect of the lease on the lessor's earnings during the first year (ignore taxes)