On December 31, 2019, crane company leased machinery from terminator corporation for an agreed upon lease term of 3 years. Crane agreed to make an annual lease payments of 20,500 beginning on december 31,2019.The expected residual value of the machinery at the end of the lease term is 10250. Crane guarentees a residual value of 10250 at t he end of the lease term which equals the expected residual value of the machinery.

What amount with crane company record as a lease liability if the expected residual value at the end of the lease term is 7250 and crane guarantees a residual of 10250. Its incremental borrowing rate is 8% and the implicit rate is of the lease is unknown.