Minton, Inc. leased equipment from Gary Company under a four-year lease requiring equal annual payments of $344,152, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4 year useful life and no salvage value. Minton, Inc.'s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Minton, Inc.) is 8%. Assuming that this lease is properly classified as a finance lease, what is the amount of Lease Liability reduction recorded in first year after the lease inception. PV Annuity Due PV Ordinary Annuity 8%, 4 periods 3.57710 3.31213 10%, 4 periods 3.48685 3.16986 1) $273,199 2) $245,666 3) $344,152 4) $252.960