On January 1, Ramirez Supply leased a car for a four-year period, at which time possession of the car will revert back to the lessor. Annual lease payments are $18,100 due on December 31 of each year, calculated by the lessor using a 4% discount rate. Negotiations led to Ramirez guaranteeing the lessor a $54,300 residual value at the end of the lease term although Ramirez estimates that the residual value after four years will be $51,200. What is the amount to be added to the right-of-use asset and lease payable under the residual value guarantee? Note: Round your answer to the nearest whole dollar amount.

The present value of $1: n= 4, i= 4% is 0.85480.

The present value of an ordinary annuity of $1: n= 4, i=4% is 3.62990.

The present value of an annuity due of $1: n = 4, i = 4% is 3.77509.

A.1751

B.1857

C.2650

D.3868