Lessee Company enters into a six$-$year finance lease of nonspecialized equipment with Lessor Company on January $1.$ Lessee has agreed to pay $$30,000$ annually beginning immediately on January $1.$ The lessor estimates the residual value

of the equipment to be $$5,000$ at lease end, but the lessee has not guaranteed the residual value. The economic life of the asset is seven years. The lessee's incremental borrowing rate is $7\%$ and the lessor's implicit rate is not readily

determinable by the lessee company. What is the value of the lease liability on January $1,$ assuming that the lease is properly classified as a finance lease?

Lease liability: $