Lisa Company (lessor) leased machinery to White Company on January 2,

2019, for a ten-year period. Equal annual payments under the lease are

$131,710 and are due on

January 2 of each year. The first payment was

made on January 2, 2019. The rate of interest used by Lisa is 7% and is

known by White.

The cost of the machinery on Lisa's accounting records

was $700,000. The machinery is estimated to have

an unguaranteed

residual value of $20,000. The lease is appropriately recorded as a sales-

type lease for accounting

purposes by Lisa. The present value of an

annuity due of 1 for

10 years at 7% is 7.51523. The present value of 1 for 1

10 years at 7% is 0.50835. Lisa uses the straight-line method of

depreciation for all of its fixed assets. The amount that shoul be reported by Lisa as the balance of total lease receiveable and interest receiveable on its December 31 2019 statement of financial position is....

a. 929070

b. 868290

c.131070

d. 797360