On January 1, 2018, Rastall Co

Multiple Choice

On January 1, 2018, Rastall Co. signed a long-term finance lease for an office building. The terms of the lease required Rastall to pay $30,000 annually, beginning December 31, 2018, and continuing each year for 30 years. On January 1, 2018, the present value of the lease payments is $337,500 discounted at the 8% interest rate implicit in the lease. In Rastall's December 31, 2018, balance sheet, the lease payable should be

A) $307,500
B) $334,500
C) $337,500
D) $870,000