Please show work:

Question 1 4 / 4 Pts Smith leased a machine and appropriately accounted for the lease as a long-term nance lease. The lease contains a bargain purchase option of $50,000 that is exercisable at the end of the ten-year lease term. Smith's annual lease payment will be of $500,000. Smith's first lease payment is due upon the inception of the lease. Smith used an interest rate of 5% relating to this lease. What amount will Smith record as a lease liability at the inception of the lease? $3,910,867 $4,084,607