QUESTION 6 Reynolds Company leases a machine from Vollmer Corp. under an agreement which meets the criteria to be a financing lease for Reynolds. The six-year lease requires payment of $170,000 at the beginning of each year, including $24.000 per year for maintenance, insurance, and taxes. The incremental borrowing rate for the lessee is 10%; the lessor's implicit rate is 8% and is known by the lessee. The present value of an annuity due of 1 for six years at 10% is 4.79079. The present value of an annuity due of 1 for six years at 8% is 4.99271 Question: Reynolds should record the leased asset at