On January 1, 2016, Luke, Inc. leased equipment, signing a five-year lease that requires five payments of $40,000 due on January 1 of each year with the first payment due January 1, 2016. Luke accounted for the lease as a capital lease. Using a rate of 9%, Luke determined the present value on January 1, 2016, to be $169,589. What is the amount of the long-term lease obligation that Luke should report on its December 31, 2017 balance sheet?

a. $70,364 b. $101,252 c. $112,915 d. $129,589