Short Company Purchased Land by Paying $10,000 Cash on the Purchase

Multiple Choice

Short Company purchased land by paying $10,000 cash on the purchase date and agreeing to pay $10,000 for each of the next ten years beginning one-year from the purchase date. Short's incremental borrowing rate is 10%. On the balance sheet as of the purchase date, after the initial $10,000 payment was made, the liability reported is closest to:

A) $100,000.
B) $38,550.
C) $61,446.
D) $71,446.