Kelly's Restaurants Has a Balance Sheet with $306 503 in Total

Multiple Choice

Kelly's Restaurants has a balance sheet with $306 503 in total assets, $206 127 in debt and $154 376 in equity. The company is about to lease new equipment for a 5-year term at a rate of 6.25% and annual payments of $22 308. The equipment's useful life is 6 years. On the company's balance sheet, what will the amount of total assets be on the day the lease contract is signed?

A) $76 859
B) $306 503
C) $405 670
D) $99 167