Use the Following Information for Questions 10-11

Multiple Choice

Use the following information for questions 10-11.
On January 1, 2020, Jeckyll Ltd. signs a 8-year non-cancellable lease agreement to lease a storage building from Hyde Inc. Hyde is in the business of leasing/selling property. Collectibility of the lease payments is reasonably assured and no additional costs are to be incurred by the lessor (other than executory costs) . Both the lessor and the lessee are private corporations adhering to ASPE. The following information is available regarding this lease agreement:
1. The agreement requires equal payments at the end of each year.
2. At January 1, 2020, the fair value of the building is $ 1,350,000 and Hyde's book value is $ 1,125,000.
3. The building has an estimated economic life of 8 years, with no residual value. Jeckyll uses straight-line depreciation for all its depreciable assets.
4. At the termination of the lease, title to the building will transfer to the lessee.
5. Jeckyll's incremental borrowing rate is 10%. Hyde Inc. set the annual rental to ensure a 9% rate of return. The lessor's implicit rate is known to Jeckyll.
6. The yearly lease payment includes $ 4,500 executory costs related to taxes on the property.
-Rounded to the nearest dollar, the amount of the total annual lease payment is

A) $ 203,252.
B) $ 239,402.
C) $ 243,902.
D) $ 248,402.