Lessee Company enters into a lease on January 1, 2021, that is accounted for as a finance lease. The lease calls for quarterly payments of $15,000, beginning on January 1, 2021, and continuing for 5 years. The last payment is due on October 1, 2025. The lease has an implicit annual interest rate of 12%. The present value of an annuity due at 12% per period for 5 periods is 4.037; the present value of an annuity due at 3.00% per period for 20 periods is 15.324. What amount will Lessee report as a lease payable (not including accrued interest) in its financial statements dated December 31, 2021?

Multiple Choice

• $229,860

• $179,072

• $188,420

• $302,801