On January 1, 20X1, 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 mini-mum 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 Company's lease liability immediately after the January 1, 20X2 payment was made?

Multiple Choice

• $430,422
• $298,422
• $380,384
• $260,384