please help me with accounting..thank you

Allen Co. leased equipment for its entire 9-year useful life, agreeing to pay $40,000 at the start of the lease term on December 31, Year 1, and $40,000 annually on each December 31 for the next 8 years. The present value on December 31, Year 1, of the nine lease payments over the lease term, using the lessor's rate Implicit in the lease, was $238, 800. Allen knows that this rate is 12%. The December 31. Year 1, present value of the lease payments using Allen's Incremental borrowing rate of 10% was $253, 200. Allen made timely first and second lease payments. What amount should Allen report as total capital lease liability in its December 31, Year 2, balance sheet? Select one: $180, 120 $182, 656 $194, 520 $222, 656 $250, 144