Accounting

On January 1, 2021, Rastall Co. signed a long-term finance lease for an office building. The terms of the lease required Rastall to pay $10,000 annually, beginning December 31, 2021, and continuing each year for 12 years. On January 1, 2021, the present value of the lease payments is $75,361 discounted at the 8% interest rate implicit in the lease. In Rastall's December 31, 2021, balance sheet, the lease payable should be: A) $65,361 B) $110,000 C) $75,361 D) $71,390