How should the total lease liability be reported in the statement of financial position at 30 November 2010?

On 1 December 2009 Reon Co acquired a non-current asset at a cost of $318,000. The purchase was financed through a six year finance lease. Under the lease, an initial payment of $71,000 was made on 1 December 2009. Five further payments of $71,000 are required on 1 December each year, commencing 1 December 2010. Reon uses the sum of digits method to allocate interest to accounting periods.

How should the total lease liability be reported in the statement of financial position at 30 November 2010?
A . Current liability = $71,000, Non-current liability = $212,000
B . Current liability = $36,000, Non-current liability = $247,000
C . Current liability = $42,200, Non-current liability = $240,800
D . Current liability = $35,000, Non-current liability = $248,000

Answer: A