Sandhill, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $424152, 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. If Sandhill, Inc.s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Sandhill, Inc.) is 8%, what is the amount recorded for the leased asset at the lease inception?

	PV Annuity Due	PV Ordinary Annuity
8%, 4 periods	3.57710	3.31213
10%, 4 periods	3.48685	3.16987

$1344507

$1517234

$1404847

$1478954