Exhibit 21-1 on January 1, 2010, Victor Company Signed a Lease

Multiple Choice

Exhibit 21-1 On January 1, 2010, Victor Company signed a lease agreement requiring six annual payments of $60, 000, beginning December 31, 2010.The lease qualifies as a capital lease.Victor's incremental borrowing rate was 9% and the lessor's implicit rate, known by Victor, was 10%.The present value factors of an ordinary annuity of $1 for six periods for interest rates of 9% and 10% are 4.485919 and 4.355261, respectively.
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Refer to Exhibit 21-1.The balance of the lease obligation for financial reporting purposes on December 31, 2010, after the lease payment would be (round answers to the nearest dollar)

A) $ 0
B) $167, 979
C) $227, 448
D) $233, 379