On January 1, 2019, Lessee Company entered into a five-year lease which required annual payments of $120,000. The first payment was due at the inception of the lease. The present value of the minimum lease payments to initially record the lease was $500,384; the applicable discount rate was 10%. Lessee Company treated the lease as a finance lease under ASC 842. What is the balance of Lessee Companys lease liability immediately after the January 1, 2020 payment was made?

Multiple Choice

• $260,384

• $298,422

• $430,422

• $380,384