On January 1, Year 1, Assembly Line Manufacturing uses a capital/Type A lease to finance the transfer of a large piece of machinery to Sansa Company. The terms of the lease calls for Sansa to make six annual payments of $100,000 beginning December 31, Year 1. The lease payments include an interest charge of 10% per year. At the end of the 6-year lease, title to the machinery will pass to Sansa at no additional cost.

Required:

What is the amount of the sales revenue that will be recognized by Assembly Line Manufacturing on January 1, Year 1?