On January 1, 2014, Stephen Corp

On January 1, 2014, Stephen Corp., a lessor, signed a direct financing lease. Stephen was to receive annual year-end payments of $10,000 for ten years, after which there was a guaranteed residual value of $8,000. The implicit interest rate was 8%. Actuarial information for 8%, ten periods follows: (round to the nearest whole dollar)



On January 1, 2014, Stephen should record a debit to Lease Receivable for

A) $67,100
B) $70,814
C) $100,000
D) $108,000