An asset with a cost of $80,000 is leased on 1/1/x1. The lease is a salestype lease for the lessor. Six annual lease payments are due on December 31 beginning on 12/31/x1. The asset will have no residual value. The lessor sets a rate of return of 8% and charges the lessee annual lease payments of $20,550.

Present value factor of an ordinary annuity for six years at 8%. 4.62288

Present value factor of an annuity due for six years at 8% 4.99271

Present value factor of a single sum for a sixyear term at 8% .63017

In the journal entry at the inception of the lease, what amount does the lessor credit to sales revenue?

Group of answer choices

A. $15,000

B. $95,000

C. $102,600

D. $80,000