Mays Company has a machine with a cost of $750,000 which also is its fair value on the date the machine is leased to Park Company.

The lease is for 6 years and the machine is estimated to have an unguaranteed residual value of $75,000.

If the lessors interest rate implicit in the lease is 12%, the six beginning-of-the-year lease payments would be:

Group of answer choices

$154,623.

$125,000.

$146,587.

$162,874.