Law Co. leased a machine from Alberta Co. The lease qualifies as a capital lease and requires 10 annual payments of $10,000 beginning immediately. The lease specifies an interest rate of 12% (known to Law) and a bargain purchase option of $10,000 at the end of the tenth year. Law's incremental borrowing rate is 14%. The present value of an annuity due at:

12% for 10 years is 6.328

14% for 10 years is 5.946

The present value of 1 at:

12% for 10 years is .322

14% for 10 years is .270 What amount should Law record as lease liability at the beginning of the lease term?

Select one: a. $62,160 b. $64,860 c. $66,500 d. $69,720