ACC int II ch 15

Noah Corp. entered into a nine-year finance lease on a warehouse on December 31, 2018. Lease payments of $28,483, which includes maintenance services of $1,760, are due annually, beginning on December 31, 2019, and every December 31. Noah's incremental borrowing rate is 12%. The rounded present value of an ordinary annuity for nine years at 12% is 5.33. What amount should Noah report as recorded lease liability at December 31, 2018?