Pharoah, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $264152, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no salvage value. If Pharoah, Inc.'s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Pharoah, Inc.) is 8%, what is the amount recorded for the leased asset at the lease inception? PV Annuity. Due PV Ordinary Annuity 8%, 4 periods 3.31213 10%, 4 periods 3.48685 3.16987 $944898 $921058 $837328 $874906