On January 1, 2019, Wynn Manufacturing Leased a Floor of a Building

On January 1, 2019, Wynn Manufacturing leased a floor of a building for use in its North American operations from Easymoney Bank. The 9-year, noncancellable lease requires annual lease payments of $12,000, beginning January 1, 2019, and at each January 1 thereafter through 2027. The lease agreement does not transfer ownership, nor does it contain a purchase option. The floor of the building has a fair value of $85,000 and an estimated remaining life of 10 years. Easymoney Bank's implicit rate of 10% is known to Wynn.
At what amount is the lease liability recorded at lease commencement?

A) $81,108
B) $76,019
C) $108,000
D) $85,735