Current Attempt in Progress On December 31, 20X5, Day Co. leased a new machine from Parr with the following pertinent information: Lease term Annual rental payable at beginning of each year Useful life of machine 6 years $50,000 8 years 15% Implicit interest rate in lease (known by 12% Day) Day's incremental borrowing rate Present value of an annuity of one in advance for six periods at: 12% 15% 4.61 4.35 The lease is not renewable, and the machine reverts to Parr at the termination of the lease. The cost of the machine on Parr's accounting records is $375,500. At the beginning of the lease term, Day should record a lease liability of $217,500. $230,500. $375.500. $0