Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2018. The manufacturing cost of the computers was $12 million. This noncancelable lease had the following terms:

Lease payments: $2,466,754 semiannually; first payment at January 1, 2018;

remaining payments at June 30 and December 31 each year through June 30, 2022.

Lease term: five years (10 semiannual payments).

No residual value; no purchase option.

Economic life of equipment: five years.

Implicit interest rate and lessee's incremental borrowing rate: 5% semiannually.

Fair value of the computers at January 1, 2018: $20 million.

Lone Star Company would debit Right -of-use-Asset and credit Lease liability for this amount:

		A) $20,000,000
		B) $19,047,608
		C) $32,577,927
		D) $24, 667,540