On January 1, 2016, Mary Company leased equipment, signing a five-year lease that requires annual lease payments of $20,000. The lease qualifies as a capital lease. The payments are made at year-end, and the first payment will be made at December 31, 2016. In addition, Mary guarantees the residual value to be $8,000 at the end of the lease term. Mary correctly uses the lessor's 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

Refer to Exhibit 20-2. What would be the debit to Leased Equipment under Capital Leases on January 1, 2016? (Round amounts to the nearest dollar.)

a. $76,635

b. $110,000

c. $100,000

d. $72,096