It is the correct answer but I need a detail step-by-step for the computation. Thanks!

Sandy Co enters into a lease agreement on 1 July 202. The lease term is 5 years. Annual rental payments in advance are $2,500. On 1 July 202, the four future payments discounted at the implicit rate in the lease give a present value of $8,200. The acquired asset has a fair value of $10,100. To incentivise Sandy to enter into the lease, the lessor has agreed to pay Sandy Co a $500 contribution [lease incentive] towards the $900 costs of setting up the lease. At what amount is the right of use asset initially measured in the lessee books? A $10,200 B $11,600 C $10,700 D $11,100 A B C D