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On January 1, 2021, Rastall Co. signed a long-term finance lease for an office building. The terms of the lease required Rastall to pay $23,000

On January 1, 2021, Rastall Co. signed a long-term finance lease for an office building. The terms of the lease required Rastall to pay $23,000 annually, beginning December 31, 2021, and continuing each year for 18 years. On January 1, 2021, the present value of the lease payments is $166,742 discounted at the 12% interest rate implicit in the lease. In Rastall's December 31, 2021, balance sheet, the lease payable should be:

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