On January 1, 2021, Shadow Industries (lessor) lease equipment to Bone Co. (lessee) for a 5-year period under noncancelable agreement, after which the leased asset will revert back to Shadow Industries.

- The equipment costs Shadow $660,000 and normally sells for $744,388.

- Equal payments under the lease are $160,000 and are due on December 31 of each year, with the first payment made on January 1, 2021.

- The equipment has a useful life of 6 years.

- The equipments residual value is $80,000 at the end of the lease term.

- The rate implicit in the lease used by the Shadow is 8%, Bones incremental borrowing rate is 10% and lessee is aware of lessors rate.

What total amount did Shadow record in its income statement for the reporting year ending December 31, 2021 in connection with the lease? (ignore taxes.)