On January 1, Year1, Nath Services, Inc., a computer software training firm, leased several computers from ComputerWorld Corporation under a four-year operating lease agreement. The contract calls for four lease payments of $10,000 each, payable on the last day of the year. Year1's lease payment is made on the last day of Year1.
The computers were acquired by ComputerWorld at a cost of $64,000 and were expected to have a useful life of eight years with no residual value.
With respect to this lease, by what amount will the net income of Nath Services decrease in the first year? (Ignore taxes)