Rachel Corporation purchased a building by paying $100,000 cash on the purchase date, agreeing to pay $52,000 every year for the next seven years and $110,000 ten years from the purchase date. The first payment is due one year after the purchase date. Rachel's incremental borrowing rate is 8%. The liability reported at on the balance sheet as of the purchase date, after the initial $100,000 payment was made, is closest to: (Table A.1, Table A.2, Table A.3, and Table A.4) (Use appropriate factor(s) from the tables provided.)

$321,685.

$474,000.

$421,685.

$270,733.