At December 31, 2020, Bingo Industries has $778,500 in bonds payable (due in 2025), $128,000 in notes payable (due in 2028), and a $65,700 discount on bonds payable. Bingo is thinking about leasing equipment. The present value of the lease payments is $172,050. Of that amount, Bingo would pay 30% within the next 12 months, another 30% in the 12 months after that, and the remaining 40% in the 12 months after that. If Bingo proceeds with the lease, its total long-term liabilities will be Select answer from the options below: $840,800. $961,235. $1,012,850. $892,415.

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.