Pisa, Inc. leased equipment from Williamsburg Company under a four-year lease requiring equal annual payments of $86,038, 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. Pisa, Inc.'s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Pisa, Inc.) is 8%. Assuming that this lease is properly classified as a capital lease, what is the approximate amount of principal reduction recorded when the second lease payment is made in Year 2? 8%, 4 periods 10%, 4 periods PV Annuity Due 3.57710 3.48685 Pv ordinary Annuity 3.31213 3.16986 Select one: a. $70,124 b. $61,417 c. $63,240 d. $68,300 e. $62,836.