HKU Company leases a retail outlet in a shopping mall for a total of 18 months. The lease contract requires a $60,000 monthly fixed lease payment to be paid at the beginning of each month plus additional performance-based variable payment to be paid at the end of each month based on 1% of the monthly sales revenue generated by the retail outlet. HKU Company expects that the monthly total sales generated from the outlet is $1,000,000. How much lease liability should HKU company record at time 0 when the lease contract is signed (assuming the annual interest rate is 12%)? A. $1,157,721 B. $1, 147,881 C. $983,898 D. $993,738