Metcalf Company leases a machine from Vollmer Corp. under an agreement that meets the criteria to be a finance lease for Metcalf. The six-year lease requires payment of $170,000 at the beginning of each year, including $25,000 per year for maintenance, insurance, and taxes. The incremental borrowing rate for the lessee is 10%; the lessor's implicit rate is 8% and is known by the lessee. The present value of an annuity due of 1, for six years at 10%, is 4.79079. The present value of an annuity due of 1, for six years at 8%, is 4.99271. Metcalf should record the leased asset at $848,760 $814,435 $723,943 $694,665