On January 1, 2019, Mary Company leased equipment, signing a five-year lease that requires annual lease payments of $20,000. The lease qualifies as a finance lease. The payments are made at year-end, and the first payment will be made at December 31, 2019. In addition, Mary guarantees the residual value to be $10,000 at the end of the lease term and expects the equipment to be worth $2,000 at the end of five years. 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 Right-of-Use Asset on January 1, 2019? a. $72,096 b. $76,635 C. $100,000 d. $110,000