on January 1, 20x1, beard company purchased a machine for $620,000. The machine is expected to have a 10-year life, with no salvage value, and will be depreciated by the straight line method. On January1, 20x1, it leased the machine to child company for a three-year period at an annual rental of $128,000 to be paid at the end of each year. Beard could have sold the machine for $817,298 instead of leasing it. Child does not know the implicit rate in the lease, but it has an incremental rate of 10.5%. Child company has a December 31 reporting year. What are the amounts of the right-of-use asset and lease liability that Child Company should report on it's balance sheet.

A: $231,700

B: $128,000

C: $817,298

D: $62,000

E: $220,667