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Herman Labs leased chronometers from Beaver Instruments on January 1, 2018 under a four-year lease agreement...

Herman Labs leased chronometers from Beaver Instruments on January 1, 2018 under a four-year lease agreement in a finance lease. The lease agreement specifies quarterly payments of $11,000 beginning January 1, 2018, the beginning of the lease, and at March 31, June 30, September 30, and December 31 thereafter. Beaver Instruments manufactured the chronometers at a cost of $120,000. The chronometers have a fair value of $150,000, with economic life of six years. Estimated residual value at the end of lease term is $12,328, unguaranteed by Herman. Beaver seeks a 12% return on its lease investments. The amount of sales revenues recorded by Beaver on January 1, 2018 would be:

a. $142,318
b. $148,634
c. $150,000
d. $145,382

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