expiring December 30, Y ear 10. Annual payments of $100,000 are due on December 31. The first payment was made on December 31, Year 1, and the second payment was made on December 31, Year 2. The present value at the inception of the lease for the 10 lease payments discounted at 10% was $676,000. The lease is appropriately accounted for as a finance lease by Ball. In its December 31 , Year 2 balance sheet, Ball should report a lease liability of $643,600. $608,400 $533,600. $518,400