Rae Company purchased a new vehicle by paying $10,400 cash on the purchase date and agreed to pay $3,400 every three months during the next five years. The first payment is due three months after the purchase date. Rae's incremental borrowing rate is 8%. The liability reported on the balance sheet as of the purchase date, after the initial $10,400 payment was made, is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.)

$68,000.

$55,595.

$78,400.

$65,995.