On January 1, 2011, Blaugh Co. signed a long-term lease for an office building. The terms of the lease required Blaugh to pay $10,000 annually, beginning December 30, 2011, and continuing each year for 30 years. The lease qualifies as a capital lease. On January 1, 2011, the present value of the lease payments is $112,500 at the 8% interest rate implicit in the lease. In Blaugh's December 31, 2011, balance sheet, the capital lease liability should be