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Sarasota Equipment Leasing Company leased equipment to Sunland Healthcare System on January 1 , 2 0 2 5 , for a four - year period.

Sarasota Equipment Leasing Company leased equipment to Sunland Healthcare System on January 1,2025, for a four-year period. Equal annual payments under the lease are $580000 and are due on January 1 of each year. The first payment was made on January 1,2025. The Sarasota Equipment Leasing implicit rate of interest, which is known to Sunland Healthcare is 8%. Sunland incremental borrowing rate is 12%. The cost of the equipment on Sarasota Equipment Leasing accounting records was $780000. Assuming that the lease is appropriately recorded as an operating lease, what is the reduction to the carrying value of the Right-of-Use Asset account for Sunland Healthcare Systems at December 31,2025?

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