Answer Happy

Use this information to answer the next questions. Sun Corp. (lessor) leased some lighting equipment to Black Hole Inc. (lessee) on 1/1/21. It was a 4-year non-cancellable lease that required annual payments of $110.000 on January 15 of every year. On 1/1/21, Sun Corp's equipment was held at a cost of $250,000. The equipment has an expected residual value of $45,000 at the end of the lease term, but Black Hole Inc. makes no guarantee about the residual value. The equipment has a fair market value of $420,322.35 and a 5-year useful life. At the end of its useful life, the asset has an expected residual value of $8,000. Sun Corp. expects to earn a 9% annual rate of return (implicit rate), which matches Black Hole Corp's incremental borrowing rate.
6. What is the balance of the lease receivable recorded by Sun Corp. at December 31, 2021? (2 points)