On October 1, 2021, Sparta Inc. leased equipment from Wolverine Inc. in lease payable in five equal annual payments of $420,000, beginning Oct 1, 2022. Similar transactions have carried an 8% interest rate. The right-of-use asset would be recorded by Sparta at: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Multiple Choice

$0.

$1,676,938.

$2,100,000.

$1,811,095.