StatMed Corporation Leases Medical Equipment Under a Five-Year Capital Lease

StatMed Corporation leases medical equipment under a five-year capital lease. The terms of the lease call for five equal payments of $21,000, with the first payment due at the inception. The interest rate implicit in the lease is 10%. At what value is the leased equipment recorded at the inception of the lease?

A) $21,000
B) $105,000
C) $87,567
D) $79,607