On January 1, 2004, Zonal Company leased equipment to Ethan & Sons Co. for 8 years. The cost of the leased equipment was $110,000, and the fair value of the asset was $234,736.80. The lease required an annual payment of $40,000 at the beginning of each year. The interest rate implicit in the lease was 10%. Which of the following amounts should the lessor debit to Lease Receivable at the inception of the lease?

A) $234,736.80

B) $110,000

C) $213,397

D) $325,678.20