Question 3 -- / 10 East Co. leased a new machine from North Co. on May 1, 2016, under a lease with the following information: Lease term 10 years annual lease payments due at the beginning of each lease year $40,000 remaining useful life of the machine 12 years implicit interest rate 149 Present value factor for an annuity due n=10,i=14% 5.95 Present value factor of $1 with terms n=10, 1-14% 0.27 East has the option to purchase the machine on May 1, 2023, by paying a bargain price of $5,000. Question: What value should East Co, initially record on May 1st to establish the Lease Liability? $243,000