Nichols Fruits leased farm equipment from King Machinery on January 1, 2024. The present value of the lease payments discounted at 10% was $40 million. Ten annual lease payments of $6 million are due at the beginning of each year beginning January 1, 2024. King had constructed the equipment recently for $33 million. With this lease agreement, control is considered to be transferred to the lessee at the beginning of the lease. What amount did King record as a lease receivable?

$6 million.

$7 million.

$33 million.

$40 million.