On December 30, 2019, Trace Company leased equipment under a finance lease for a period of 10 years. Trace contracted to pay $80,000 annual rent on December 31, 2019, and on December 31 of each of the next nine years. The finance lease liability was appropriately recorded at $610,000 on December 30, 2019, before the first payment. The leased equipment has a useful life of 12 years, and the interest rate implicit in the lease is 10%, known by Trace. Trace uses the straight-line method for depreciating all equipment. In recording the December 31, 2020, payment, Trace should reduce its lease liability by: A. $80,000 B. $29,700 C. $29,169 D. $27,000