Nice Manufacturing Company leased a piece of nonspecialized equipment for use in its operations from Righteous Leasing on January 1, 2023. The 10 year lease requires lease payments of $9,000, beginning on January 1, 2023, and at each December 31 thereafter through 2031. The equipment is estimated to have a 10 year life, is depreciated on the straightline basis and will have a $4,500 residual value at the end of the lease term on December 31, 2032, which is guaranteed by Nice. Nice's incremental borrowing rate is 6%. Initial direct costs of $2,500 are incurred on January 1, 2023. Righteous Leasing acquired the asset just prior to the lease term at a cost of $64,328. Collection of all lease payments is reasonably assured. What is the amount of the lease liability recorded by Nice at the lease's commencement?

The correct answer is 72,728 How was the answer 72,728 calculated?