Neal Corp. entered into a nine-year lease on a warehouse on December 31, 20x1. Lease payments of 52,000, which includes payment for non-lease component of 2,000 (stand-alone selling price), are due annually, beginning on December 31, 20x1, and every December 31 thereafter. Neal does not know the interest rate implicit in the lease; Neal's incremental borrowing rate is 9%. What amount should Neal report as lease liability at December 31, 20x1? show the solution and explain.