On January 1, 2021, Duncan-Lang Services, Inc. a computer software training firm, leased several computers under a two-year operating lease agreement from Neble Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $40,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by Neble at a cost of $360,000 and were expected to have a useful life of five years with no residual value.

Right-of-use Asset(Lessee) Lease Receivable(Lessor)

1. $ 152,309 $ 0
2. $ 360,000 $ 360,000
3. $ 152,309 $ 152,309
4. $ 0 $ 152,309

On January 1, 2021, what amount would be recorded by the Lesse and the Lessor respectively?

		A) Option 1
		B) Option 2
		C) Option 3
		D) Option 4