Sheridan, Inc. manufactures machinery used in the mining industry. On January 2, 2025 it leased equipment with a cost of $410000 to Sheffield Co. The 5-year lease calls for a 20% down payment and equal annual payments of $138530 at the end of each year. The equipment has an expected useful life of 5 years. Sheffield's incremental borrowing rate is 9%, and it depreciates similar equipment using the double-declining balance method. The selling price of the equipment is $710000, and the rate implicit in the lease is 7%, which is known to Sheffield. What is the book value of the leased asset at December 31, 2025? A$568000 B $710000 C $454400 D $426000