On January 1, 2018, Blaugh Co. signed a long-term lease for an office building. The terms of the lease required Blaugh to pay $10,000 annually, beginning December 30, 2018, and continuing each year for 30 years. The lease is a finance lease. On January 1, 2018 the present value of the lease payments is $112,500 at the 8% interest rate implicit in the lease. In Blaugh's December 31, 2018, balance sheet, the financing lease liability should be $112,500

$290,000

$102,500

$111,500