On January 1, 2015, Harrison Company, a lessee, signed a five-year lease, which qualifies as a capital lease, requiring annual lease payments of $15,000 for equipment. The payments are made at year-end, and the first payments will be made at December 31, 2015. In addition, Harrison guarantees the residual value to be $5,000 at the end of the lease term. Harrison correctly uses the lessors implicit interest rate, which is 12%. The present value factors for five periods at 12% are as follows:

Present value of 1 0.567427

Present value of ordinary annuity of 1 3.604776 What would be the debit to Leased Equipment Under Capital Leases on January 1, 2015? (Round amounts to the nearest dollar.) A. $80,000

B. $56,909

C. $54,072

D. $51,235