28 Pisa, Inc. leased equipment from Tower Company under a four-year lease requiring equal annual payments of $344,152, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4 years and no salvage value. Pisa, Inc.'s incremental borrowing rate is 10% and the rate implicit in the lase (which is known by Pisa, Ines Assuming that this lease is properly classified as a finance lease, what is the amount of Lease Liability reduction recorded in first year at the lease inception PV Annuity. Due PV Ordinary Annuity 8%, 4 periods 3.57710 3.31213 10%, 4 periods 3.48685 3.16986 a. $344,152 b. $245,666 c. $252.960 d. $273,199