Marin Company leases an automobile with a fair value of $16,513 from John Simon Motors, Inc., on the following terms:

1.		Non-cancelable term of 50 months.
2.		Rental of $340 per month (at the beginning of each month). (The present value at 0.5% per month is $8,873.)
3.		Marin guarantees a residual value of $1,420 (the present value at 0.5% per month is $920). Delaney expects the probable residual value to be $1,420 at the end of the lease term.
4.		Estimated economic life of the automobile is 60 months.
5.		Marins incremental borrowing rate is 6% a year (0.5% a month). Simons implicit rate is unknown.

What is the present value of the lease payments to determine the lease liability? (Round answer to 0 decimal places, e.g. 5,275.)

Present value of the lease payments

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