1. Lucille Ltd purchased land and constructed a service station, at a total cost of $450,000. On January 2, 2011, when construction was completed, Lucille sold the service station and land to a major oil company for $500,000, and immediately leased it back from the oil company. Fair value of the land at the time of the sale was $50,000. The lease is a 10-year, non-cancellable lease. Lucille uses straight-line amortization for its other assets. The economic life of the station is 15 years with zero residual value. Title to the property will revert back to Lucille at the end of the lease. A partial amortization schedule for this lease follows:

Payments Interest Amortization Balance

Jan. 02, 2011 0 0 0 $500,000.00

Dec. 31, 2011 $81,372.66 $50,000.00 $31,372.66 468,627.34

Dec. 31, 2012 81,372.66 46,862.74 34,509.92 434,117.42

Dec. 31, 2013 81,372.66 43,411.74 37,960.92 396,156.50

What is the amount of the lessee's obligation to the lessor after the December 31, 2013 payment? (Rounded to the nearest dollar.)

1. $500,000.00
2. 468,627.34
3. 434,117.42
4. 396,156.50
5. none of the above.