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 an annual payment of 108,000 is required at the end of each year. The useful economic life of the asset is 8 years, with an unguaranteed residual value of $23,000. Lessor Co. desires to earn a return of 10% (lessors implicit rate) on its investment. In the journal entry made on January 1, 2021, how much should Lessor Co. record for Lease Receivable?

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