View Policies Current Attempt in Progress Sheridan, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $394152, 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. Sheridan, Inc's incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Sheridan, Inc.) is 8%. Assuming that this lease is properly classified as a finance lease, what is the amount of Lease Liability reduction recorded from the second payment? PV Annuity. Due PV Ordinary Annuity 3.57710 3.31213 8%,4 periods 10%, 4 periods 3.48685 3.16987 $394152 $312890 $249826 $289714