Calculate the lease liability

On 30 June 2022, Ruth Ltd. leased a machine from Lee Ltd. The finance lease agreement contained the following provisions Lease term 4 years The lease is cancellable, but only with the permission from the lessor, Annual rental payment, in advance on 30 June each year (starting at 30/06/2022) $24.700 Estimated useful life of asset 5 years Estimated residual value of machine at end of lease term $ 12,000 Residual value guarantee by lessee $8,000 Interest rate implicit in the lease 5% Included in the annual rental payment is an amount of $1.300 to cover the costs of maintenance and insurance paid for by the lessor. Ruth Ltd intends to return the machine to the Lee Ltd. At the end of the lease term, the machine was returned to the lessor who sold the machine for $7.000. Included in the annual rental payment is an amount of $1,300 to cover the costs of maintenance and insurance paid for by the lessor. Ruth Ltd intends to return the machine to the Lee Ltd. At the end of the lease term, the machine was returned to the lessor who sold the machine for $7,000. Table: Present value for a single payment Table: Present value for multiple payments (annuity) Period Interest rate 5% Period Interest rate 5% 1 0.9524 1 0.9524 N 0.907 N 1.8594 3 0.8638 3 2.7232 4 0.8227 4 3.546 5 5 0.7835 5 4.3295