Davis Co, a Lessor, Signed a Direct Financing Lease on January

Davis Co., a lessor, signed a direct financing lease on January 1. The cost and fair value of the machine that was leased was $60,000. The implicit interest rate was 6%. The lease period was seven years, with the first payment due immediately. Actuarial information for 6% follows:
What is the annual lease payment to be collected by Davis?

A) $8,571.43
B) $9,115.25
C) $10,139.72
D) $11,516.78