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)
Present value of ordinary annuity of $1
6.71008
Present value of amount of $1
0.46319
?On January 1, 2016, what amount should Stephen record as a debit to Lease Receivable?