Sheridan, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $274152, 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 Sheridan, Inc.s incremental borrowing rate is 9% and the rate implicit in the lease (which is known by Sheridan, Inc.) is 7%, what is the amount recorded for the leased asset at the lease inception?

	PV Annuity Due	PV Ordinary Annuity
7%, 4 periods	3.62432	3.38721
9%, 4 periods	3.53129	3.23972

$968110

$993615

$888176

$928610