Kingston Corporation leases equipment from Falls Company on January 1, 2017. The lease agreement does not transfer ownership or contain a bargain purchase option, and is not a specialized asset. It covers 3 years of the equipment's 8-year useful life, and the present value of the lease payments is less than 90% of the fair value of the asset leased. Assume the annual lease payment is $21000 at the beginning of each year, and Kingston's incremental borrowing rate is 6%, which is the same as the lessor's implicit rate. Assume the equipment is carried at a cost of $200,000. Present value of an annuity due of 1 for 3 periods at 6% : 2.83339

Please indicate what the lessee would record for lease expense at 12/31/2017.