Kristen Limited and Bell Limited enter into a finance lease agreement with the following terms:

lease term is 4 years

estimated economic life of the leased asset is 10 years

4 annual rental payments of $30 000 each payable in advance

residual value at the end of the lease term is not guaranteed by the lessee

interest rate implicit in the lease is 8%.

On inception date, the present value of the minimum lease payments is: