On January 1, 2016, Carey, Inc., entered into a noncancelable lease agreement, agreeing to pay $5,857 at the end of each year for 2 years to acquire a new computer system having a market value of $9,900. The expected useful life of the computer system is also 2 years, and the computer will be depreciated on a straight-line basis with no salvage value. The interest rate used by the lessor to determine the annual payments was 12%. Under the terms of the lease, Carey, Inc., has an option to purchase the computer for $1 on January 1, 2020. Use the present value table Table 6-5. (Use appropriate factor from the tables provided.)

b-2. Record the journal entry that Carey, Inc., should make on January 1, 2016. (Hint: First determine the present value of future lease payments.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round up your answer to the nearest ten dollars.)