Lessor Co. signs a lease agreement on January 1, 2021, to lease equipment to Lessee Co. The term of the non-cancelable lease is 8 years, and payments are required at the end of each year. The useful economic life of the asset is 8 years, with an unguaranteed residual value of $32,000. The equipment has a cost of $135,000 and fair value of $269,000 to Lessor. Lessor's implicit rate is 10%. In the journal entry made on January 1, 2021, how much should Lessor Co. record for Cost of Goods Sold? (You must choose from the following present/future values. Please do not use the tables in the textbook, tables posted on the Blackboard, or values from a financial calculator.)

For n=8, i=10%,

Future value of a single sum: 2.14

Present value of a single sum: 0.47

Future value of an ordinary annuity of $1: 11.44

Present value of an ordinary annuity of $1: 5.33

Present value of an annuity due of $1: 5.87