Maddoff Company leases a machine from Vodor Corp. under an agreement which meets the criteria to be a finance lease for Maddoff. The six-year lease requires payment of $170,000 at the beginning of each year. The lessors implicit rate is 8% and is known by the lessee. Maddoff should record the leased asset at

Select one:

a. $814,435

b. $848,761

c. $694,665

d. $723,943