On December 31, 2024, Pharoah Company leased machinery from Sheridan Corporation for an agreed-upon lease term of 3 years. Pharoah agreed to make annual lease payments of $21,500, beginning on December 31, 2024. The expected residual value of the machinery at the end of the lease term is $11,000. (a) What amount will Pharoah record as its lease liability on December 31, 2024, if its incremental borrowing rate is 5% and the implicit rate of the lease is unknown? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places, e.g. 5,275.) Click here to view factor tables. Lease liability $