A lessee establishes a right of use asset and lease liability for a 5-year operating lease on January 1, 2020. The ROU Asset and lease liability are $66,977. The first payment is due immediately, and the incremental borrowing rate of the lessee is 6%. Annual payments are $15,000.

What is the amount of the lease liability on January 1, 2021, after the second payment has been made?

Group of answer choices:

$51,977

$55,096

$40,096

$42,501

$46,667