Culver Company manufactures a check$-$in kiosk with an estimated economic life of $12$ years and leases it to Larkspur Airlines for a period of $10$ years. The normal selling price of the equipment is $$278,247,$ and its unguaranteed residual value at the end of the lease term is estimated to be $$18,700.$ Larkspur will pay annual payments of $$40,100$ at the beginning of each year. Culver incurred costs of $$180,100$ in manufacturing the equipment and $$4,100$ in sales commissions in closing the lease. Culver has determined that the collectibility of the lease payments is probable and that the implicit interest rate is $10\%.$ Larkspur Airlines has an incremental borrowing rate of $10\%.$

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Discuss the nature of this lease in relation to the lessee.

This is a

Compute the amount of the initial lease liability. $($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and the final answer to $0$ decimal places e$.$g$.58,971.)$

The amount of the initial lease liability $