At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a seven-year operating lease agreement. The contract…

At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a seven-year operating lease agreement. The contract calls for quarterly rent payments of $5,000 each. The office building was acquired by Lakeside at a cost of $1 million and was expected to have a useful life of 15 years with no residual value.What will be the effect of the lease on LTT’s earnings for the first year (ignore taxes)? (Enter your answer in dollars not in millions. Input the amount as positive value.)LTT reduces its earnings by $__________