On January $1,2019,$ Lessee Co$.$ entered into an $8-$year agreement with Lessor Co$.$ to use equipment in typical use and with a useful life of $12$ years. The lease requires yearly payments in advance on January $1$ of each year for $$82,100.$

The FMV of the asset on open market on January $1$ is $$550,000.$ The asset cost $$520,000$ on January $1,2019$ to the Lessor.

The agreement was structured by a lease broker, who charged Lessee Co$.$ $$2,000$ to write the lease, with payment due on January $1,2019.$ Lessee $Co.$ has analyzed the service or lease implications and determined that this is a lease arrangement for accounting purposes.

The FMV of the asset is $$42,000$ at the end of the lease, and the Lessee is able to purchase the asset for $$18,000$ at the end of the lease agreement, substantially below market value.

The rate implicit in the lease$-$is $6\%,$ the lessee's incremental borrowing rate is $7\%,$ and the lessee is aware of the lease rate. Both companies use straight line depreciation for assets and a calendar year for year$-$end. What is the total amount recorded for the Right$-$of$-$Use asset through January $1$ journal entries?

$566,765$

$553,707$

$551,707$

$520,000$