Commander Ltd leased a ship to Shepard Ltd. The ship was leased for a term of ten years. On the day before the lease commencing, Commander Ltd had bought the ship for $10 000 000. The legal fees incurred by Commander Ltd to draw up the lease agreement amounted to $500 000. Assuming that the lease is a finance lease, what is the amount of the lease receivable that Commander Ltd should recognise at the start of the lease?

$10 000 000

$9 500 000

$10 500 000

There has not been enough information provided to accurately determine this