On december $31,20$x$1,$ Ball Company leased a machine from cook for a $10-$year period, expiring December $3020$Y$1.$ Annual payments of $$100,000$ are due on December $31.$ The first payment was made on December $3120$ X one and the second payment was made on December $3120$ X$2$ the present value at the inception of the lease for the $10$ lease payments discounted at $10\%$ was $$676,000.$ The lease is appropriately accounted for as a finance lease by ball.