Figueroa Company (the lessee) entered into an 8-year capital lease of equipment on January 1, Year 1
-The lessor's implicit interest rate is 4%. Figueroa's incremental borrowing rate is 6%
-Figueroa will make 8 payments of $61,000 each at the end of each year. (The payment for Year 1 is made on December 31, Year 1)
-$750 of each lease payment reimburses the lessor for annual inspection fees that are required before a company can operate this type of machine
What will Figueroa report as the initial lease liability on 1/1/Year 1, after it properly records this arrangement