ABC INCEntered into a Sales-Type Lease to Lease JKL an Asset

ABC INC.entered into a sales-type lease to lease JKL an asset that cost ABC INC.$120,000.The lease agreement requires five annual year-end rentals of $40,000 each.ABC INC.used a 15 percent interest rate to compute the rentals.The dealer's profit (or loss) that ABC INC.recognized was:

A) $14,086 loss.
B) $14,086 gain.
C) $18,000 gain.
D) $80,000 gain.