On January 1, 2015, Olum Crates signed a four-year capital lease requiring annual payments of $11,000 beginning January 1, 2015. Olums incremental borrowing rate was 6%. Actuarial information for 6% follows:

	3 Periods	4 Periods	5 Periods
Present value of ordinary annuity of 1	2.67301	3.46511	4.21236

What would be the debit to the Leased Equipment Under Capital Leases on January 1, 2015?

A. $40,403.11

B. $49,116.21

C. $38,116.21

D. $35,335.96