On January 1, Jones Corporation leased equipment to a customer for a four-year period, at which time possession of the leased asset will revert back to Jones. The equipment cost Jones $350,000 and has an expected useful life of six years. Its normal sales price is $350,000. The residual value after four years is $50,000. Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. The interest rate is 5%. Calculate the amount of the annual lease payments.

A 82,955

B 87,104

C 98,704

D 77,337