Lannister Company signed a lease for a 1,200-square-foot office building to begin on January 1, 2017. The lease has a 6-year term and should be accounted for as a finance lease. The lease does not require a down payment, but instead requires 5 equal lease payments of $24,500 beginning on December 31, 2017 through December 31, 2021. What is the list price (present value) of the lease agreement if it has an implicit rate of 7%?

Select one:

a. 100,455

b. 116,780

c. 106,072

d. 82,987