Exhibit 20-2 on January 1, 2014, Mary Company Leased Equipment

Exhibit 20-2 On January 1, 2014, Mary Company leased equipment, signing a five-year lease that requires annual lease payments of $20,000. The lease qualifies as a capital lease. The payments are made at year-end, and the first payment will be made at December 31, 2014. In addition, Mary guarantees the residual value to be $8,000 at the end of the lease term. Mary correctly uses the lessor's implicit interest rate, which is 12%. The present value factors for five periods at 12% are as follows:
- Refer to Exhibit 20-2. What would be the debit to Leased Equipment under Capital Leases on January 1, 2014? (Round amounts to the nearest dollar.)

A) $ 72,096
B) $ 76,635
C) $100,000
D) $110,000