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Question $5$ of $15$

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Crane Company leases a machine from Swifty Corp. under an agreement that meets the criteria to be a finance lease for Crane. The six$-$year lease requires payment of $$158000$ at the beginning of each year, which includes $$23800$ per year for maintenance, insurance, and taxes. The incremental borrowing rate for the lessee is $11\%$; the lessor's implicit rate is $9\%$ and is known by the lessee. The present value of an annuity due of $1$ for six years at $11\%$ is $4\mathrm{.}69590.$ The present value of an annuity due of $1$ for six years at $9\%$ is $4\mathrm{.}88965.$ Crane should record the leased asset at

$$741952.$

$$630190.$

$$772565.$

$$656191.$

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