Fitbit Ltd has leased a machine on the following terms:

Date of entering lease 1 July 2019

Duration of lease 5 years

Life of asset 6 years

Unguaranteed residual value $40,000

Lease payments inception (at the start) $60,000

Annual payments (5) $65,000

Implied rate 11.0 %

Required:

Determine the Fair Value (rounded off) of the leased asset.