On January 1, Emerald Co. entered into a 10- year noncancelable lease requiring year-end payments of $90,000. Emerald's incremental borrowing rate is 12%, while the lessor's implicit interest rate, known to Emerald, is 10%. Present value factors for an ordinary annuity for 10 periods are 6.145 at 10% and 5.650 at 12%. Present value factors for an annuity due for 10 periods are 6.759 at 10% and 6.328 at 12%. Ownership of the property remains with the lessor at expiration of the lease. There is no option to purchase the leased property. The leased property has an estimated economic life of 15 years. The fair value of the leased property is $1.2 million. What amount should Emerald recognize for the right-of-use asset on January 1? Enter whole number. Do not enter commas or dollar signs. Type your response