Smith leased a machine and appropriately accounted for the lease as a long-term operating lease. Smith will have to make ten annual lease payments of $75,000. Smith's first lease payment is due immediately upon the inception of the lease. Smith used an interest rate of 6% relating to this lease. What amount will Smith record as a lease liability at the inception of the lease?

a. $675,000

b. $585,127

c. $552,00

d. $750,000

$411,444