Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

On January 1, 2018, Johnstone leased an office building. Terms of the lease require Johnstone to make 10 annual lease payments of $138,000 beginning on January 1, 2018. A 10% interest rate is implicit in the lease agreement. At what amount should Johnstone record the lease liability on January 1, 2018, before any lease payments are made? (Round your final answers to nearest whole dollar amount.) O show less Table or calculator function: Payment: n F Liability