On January 1, 2013, Rosalie's Ice Cream Company acquired a package-labeling machine from Labels, Inc. under a three-year lease that required six semiannual rental payments of $70,729 each. Labels, Inc. ordinarily sells this machine for $337,317; therefore the interest rate implicit in this transaction is 13.96%. If Rosalie's Ice Cream Company records the lease as a capital lease, which of the following will be made to record the transaction?

a) A debit to Lease Payable for $337,317.

b) A credit to Lease Payable for $424,374.

c) A debit to Leased Machine for $337,317.

d) A debit to Leased Machine for $424,374.