Blossom Company leases a machine from Vollmer Corp. under an agreement which meets the criteria to be a finance lease for Blossom. The six-year lease requires payment of $157000 at the beginning of each year, including $23700 per year for maintenance, insurance, and taxes. The incremental borrowing rate for the lessee is 9%; the lessor's implicit rate is 7% and is known by the lessee. The present value of an annuity due of 1 for six years at 9% is 4.88965. The present value of an annuity due of 1 for six years at 7% is 5.10020. Blossom should record the leased asset at $800731. $679857. $651790. $767675