Zeffer Inc. leased a machine worth $500,000 to a client at beginning of year 11. The machine has a 20-year life. Zeffer will receive 10,000 at the beginning of each year for 5 years. At the end of 5 years, the machine is transferred back to Zeffer. As part of negotiating the lease term, Zeffer incurred $1,000 of legal fees in 1/1/Year 11.
What is effect of this lease on Zeffer's net income for Year 11? Ignore any taxes. Please clearly indicate increase or decrease next to your final answer.