Kingbird Company leases a building and land. The lease term is $4$ years and the annual fixed payments are $$780,000.$ The lease

arrangement gives Kingbird the right to purchase the building and land for $$12,250,000$ at the end of the lease. Based on an economic

analysis of the lease at the commencement date, Kingbird is reasonably certain that the fair value of the leased assets at the end of

lease term will be much higher than $$12,250,000.$

What are the total lease payments in this lease arrangement?

Total lease payments