Eight Limited leased a machine from Nine Ltd.Nine Limited was not a manufacturer or dealer. The lease was classified as a finance lease by the lessor with the following terms:

• Lease term is 4 years
• Residual value at the end of the lease term of $2 000. 60% is guaranteed by the lessee
• The amount expected to be payable by the lessee under the residual value guarantee is nil
• Annual rental payments were $12 000 p.a. paid in advance
• Present value of lease payments receivable by lessor were $45 666
• Present value of unguaranteed residual is $658
• Initial direct costs of the Eight Ltd were $1 500
• Initial direct costs of Nine Ltd were $1 000

On inception date, the fair value of the machine was:

Group of answer choices

$45 666

$46 324

$45 324

$44 824