Frisco Corp. (lessee) entered into a 7-year finance lease with Bovine Equipment (lessor) on January 1, Year 2. Lease payments of $47,500 are due annually beginning on December 31, Year 2. The interest rate implicit in the lease of 8% is known to Frisco. Frisco's incremental borrowing rate is 5%. The fair value of the leased asset on the date of the lease is $315,000. The useful life of the equipment is 8 years.7 years8 yearsThe present value of an ordinary annuity at 5%5.78646.4632The present value of an ordinary annuity at 8%5.20645.7466What amount should Frisco Corp. record for the right-of-use asset on its balance sheet on the lease commencement date? $274,854 $247,304 $307,002 $272,964