Pepper, Inc. agrees to lease equipment from the Blue Corporation for $10$ years at $$25,000$ at the end of each year. The equipment has a fair value of $$175,000$ and an estimated useful life of $10$ years. The lease includes a guaranteed residual value of $$10,000.$ In addition to the lease payments, Pepper will pay $$5,000$ per year for a maintenance agreement. Pepper can finance this lease with its bank at a $12\%$ rate. The lessor's implicit lease rate, known to the lessee, is $10\%.$ The lessor and the lessee use ASC $842$ guidelines for lease accounting.

Present value interest factors are:

PV factor of $$1$ for $10$ periods PV factor for ordinary annuity for $10$ periods

$10\%,12\%$

$0\mathrm{.}385540\mathrm{.}32197$

$6\mathrm{.}144575\mathrm{.}65022$

The entry to record this lease on Pepper's books is $($Round intermediate and final answer to the nearest whole dollar amount.$)$

A$)$ DR Right$-$to$-$use asset$-$finance lease $144,475$ CR Finance lease liability $144,475$

B$)$ DR Right$-$to$-$use asset$-$finance lease $157,469CR$ Finance lease liability $157,469$

C$)$ DR Right$-$to$-$use asset$-$finance lease $-157,469$DR Discount on lease obligation $92,531$ CR Finance lease liability $250,000$

D$)$ DR Right$-$to$-$use asset$-$finance lease $167,469$DR Discount on lease obligation $82,531$ CR Finance lease liability $250,000$