Ivanhoe Corporation enters into an agreement with Flint Rentals Co$.$ on January $1,2025$ to lease a machine to be used in its

manufacturing operations. The following data pertain to the agreement:

$($a$)$ The term of the noncancelable lease is $3$ years with no renewal option. Payments of $$380181$ are due on January $1$ of each year.

$($b$)$ The fair value of the machine on January $1,2025,$ is $$1040000.$ The machine has a remaining economic life of $10$ years, with no

salvage value. The machine reverts to the lessor upon the termination of the lease.

$($c$)$ Ivanhoe depreciates all machinery it owns on a straight$-$line basis.

$($d$)$ Ivanhoe's incremental borrowing rate is $11\%$ per year. Ivanhoe does not know the $10\%$ implicit rate used by Flint.

If Flint records this lease as a sales$-$type lease, what amount would be recorded as Lease Receivable at the inception of the lease?

$$1140543$

$$1031249$

$$1040000$

$$380181$