At the end of the December 31, 2022 fiscal year, Sandhill Trucking Corporation, which follows IFRS, negotiated and closed a long-term lease contract for newly constructed truck terminals and freight storage facilities. The buildings were erected to the company's specifications on land owned by the company. On January 1, 2023, Sandhill Trucking took possession of the leased properties and made a cash payment of $1,110,600. Although the useful life of each terminal is 40 years, the non-cancellable lease runs for 20 years from January 1,2023 , with a purchase option available on expiration of the lease. The 20-year lease is effective for the period January 1, 2023, through December 31, 2042. Advance rental payments of $955,000 are payable to the lessor on January 1 of each of the first 10 years of the lease term. Advance rental payments of $287,000 are due on January 1 for each of the last 10 years of the lease. The company has an option to purchase all of these leased facilities for $1,050,000 on December 31,2042 , although their fair value at that time is estimated at $2,860,000. At the end of 40 years, the terminals and facilities will have no remaining value. Sandhill Trucking must also make annual payments on January 1 of each year to the lessor of $130,500 for property taxes and $25,100 for insurance. The lease was negotiated to assure the lessor a 5% rate of return. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. (a) Using (1) time value of money tables, (2) a financial calculator, or (3) Excel functions, calculate for Sandhill Trucking the amount that it should capitalize on January 1, 2023. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Present value of first 10 payments $ Present value of last 10 payments Present value of bargain purchase option