Benton, 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 year useful life and no salvage value. Benton, Inc.s incremental borrowing rate is 10% and the rate implicit in the lease (which is
known by Benton, Inc.) is 8%. Assuming that this lease is properly classified as a finance lease, what is the amount of Lease Liability
reduction recorded in first year after the lease inception.
				PV Annuity Due		PV Ordinary Annuity
		8%, 4 periods		3.5771		3.31213
		10%, 4 periods		3.48685		3.16986
a.	$344,152
b.	$245,666
c.	$252,960
d.	$273,199