Lessee $-$ Initial Measurement

On January $1,2032,$ Brewed Awakening Ltd entered into a $6-$year lease to lease BrewMaestro, a state of the art espresso machine used in

the most elite high$-$end coffee shops. The BrewMaestro is expected to have an economic life of $8$ years and originally cost $$380,000$ for its

lessor to purchase.

The lease agreement stipulates that Brewed Awakening Ltd should make annual lease payments of $$65,000$ that are to be paid starting

January $1,2032.$

Brewed Awakening has an option to purchase the BrewMaestro at the end of the lease for $$12,000.$ The fair value of the BrewMaestro is

estimated to be $$7,000$ at the end of the lease term. The guaranteed residual value is $$10,000$ and Brewed Awakening expects to payout

$$0$ on the residual value guarantee. The lease for the BrewMaestro has an funguaranteed residual value of $$30,000.$

The incremental borrowing rate is $5\%$ and the implicit rate in the lease, which can be readily determinable is $4\%.$

Required: At the commencement of the lease, what would Brewed Awakening Ltd record as a lease liability?

Instructions:

Do not round intermediary answers. Round your final answer to the nearest whole dollar.

Show your answer as a number only.

Do not use $ or $+/-$ in your final answer.