On January 1, 2019, Lessee Corporation entered into a ten-year lease. The lease terms required annual year-end payments of $160,000. The lease agreement does not contain either a bargain purchase option or a transfer of title. The fair value of the equipment at the inception of the lease was $1,100,000; estimated life of the leased assets was fourteen years. Lessee Corporation's incremental borrowing rate was 10%. The annuity factor for an ordinary annuity for 10 years is 6.144. At what amount should Lessee Corporation record the leased asset?

a. $0, the lease should not be capitalized.

b. $983,040

c. $1,081,440

d. $904,000