Lessee Company enters into a 6-year finance lease of non-specialized equipment with Lessor Company on January 1,2020 . Lessee has agreed to pay \(\$ 28,000\) annually beginning immediately on January 1,2020 . The lessor estimates the residual value of the equipment to be \(\$ 5,000\) at lease end, but the lessee has not guaranteed the residual value. The economic life of the asset is 7 years. The lessee's incremental borrowing rate is \(7 \%\) and the lessor's implicit rate is not readily determinable by the lessee company. What is the value of the lease liability on January 1,2020 , assuming that the lease is properly classified as a finance lease?