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87. Alt Corporation enters into an agreement with Yates Rentals Co. on January 1, 2025 for the purpose of leasing a machine to be used

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87. Alt Corporation enters into an agreement with Yates Rentals Co. on January 1, 2025 for the purpose of leasing a machine to be used in its manufacturing operations. The following data pertain to the agreement: (a) The term of the noncancelable lease is 3 years with no renewal option. Payments of $574,864 are due on January 1 of each year. (b) The fair value of the machine on January 1,2025 , is $1,600,000. The machine has a remaining economic life of 10 years, with no salvage value. The machine reverts to the lessor upon the termination of the lease. (c) Alt depreciates all machinery it owns on a straight-line basis. (d) Alt's incremental borrowing rate is 10% per year. Alt does not have knowledge of the 8% implicit rate used by Yates. If Yates records this lease as a sales type lease, what amount would be recorded as Lease Receivable at the inception of the lease

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