On 1 July 2010 G Ltd entered into an arrangement with H Ltd to lease a machine for 4 years.The lease agreement included the following provisions:

• Annual payment, in advance on 1 July each year $15 000
• Residual value at end of the lease term $2 000
• Residual guaranteed by the lessee $nil
• Interest rate implicit in the lease is 7%
• The lease is a finance lease
• Expected useful life of the machine 6 years
• Residual value at end of useful life is $500
• Initial direct costs of the lessee is $800
• At the end of the lease term the machine will be returned to the lessor.

Which of the following amounts would the lessee recognise as a right of use asset at the commencement of the lease?

Group of answer choices