BE21.18(LO2) On December 31, 2018, Escapee plc leased machin- m Terminator Group for an agreed-upon lease term of 3 years. Escapee agreed to make annual lease payments of 17,000, beginning on December 31, 2018. The expected residual value of the machinery at the end of the lease term is 9,000, though Escapee does not guar- antee any residual value to Terminator. What amount will Escapee record as its lease liability on December 31, 2018, if its incremental borrowing rate is 6% and the implicit rate of the lease is unknown