Lessee leased equipment with a fair value of $600,000 on 12-31-Year 0. The agreement is a five-year noncancelable lease requiring annual payments of 132,000 with the first payment due at the signing of the lease. Lessee's incremental borrowing rate is 5%. The lessor's implicit rate is 6% and is known to the lessee. The factor for the present value of an annuity due of 1 for five years at 5% is 4.54595 and at 6% is 4.46511. What is the amount of the liability that lessee will report at 12-31-Year 0? O $600,065 $457.395 $468,065 $589395