On January 1, 2021, Sans Serif Publishers leased printing equipment from First LeaseCorp.

The lease agreement specifies six annual payments of $200,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 from 2021 through 2025.

The six-year lease term ending December 31, 2026, is equal to the estimated useful life of the equipment.

First LeaseCorp routinely acquires electronic equipment to lease to other firms.

The interest rate in these financing arrangements is 10%.

How much is the book value of the right of use on January 1, 2021?

Select one:

a. $ 0

b. $ 1,200,000

c. $ 958,160

d. $ 1,060,000