Libby Company purchased equipment by paying $5,400 cash on the purchase date and agreed to pay $5,400 every six months during the next four years. The first payment is due six months after the purchase date. Libby's incremental borrowing rate is 10%. The liability reported on the balance sheet as of the purchase date, after the initial $5,400 payment was made, is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.)

A $48,600.

B $43,200.

C $34,901.

D $40,301.