Alley Automotive leases an airless paint sprayer system for its new paint booth from the lessor, Erkelens' Paint Products, on Jan 1. The lease requires payments of $859.92 per quarter, paid at the beginning of each quarter for subsequent three years, which is the term of the lease and equal to the economic life of the asset. The asset reverts back to Erkelens at the end of the lease. Alley does not know the implicit rate, but its incremental ANNUAL borrowing rate is 4%. Erkelens expected residual value is $1,000. The guaranteed residual value negotiated in the lease is $900. Alley's expected residual value is $0. The actual residual value ends up being $500. The journal entry Alley will make on the day the lease is sign includes a debit to right-of- use asset for how much?