On January 1, 2016, Stephen Corp

Multiple Choice

On January 1, 2016, 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, 2016, what amount should Stephen record as a debit to Lease Receivable?

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