On January 1,2014,Lessee Company Entered into a Five-Year Lease Which

On January 1,2014,Lessee Company entered into a five-year lease which required annual payments of $120,000.The first payment was due at the inception of the lease.The present value of the minimum lease payments to initially record the lease was $500,384;the applicable discount rate was 10%.Lessee Company treated the lease as a capital lease.What is the balance of Lessee Company's lease liability immediately after the January 1,2015 payment was made?

A) $430,422
B) $260,384
C) $298,422
D) $380,384

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