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On January 1, 2016, Bella Donna leased an office building. Terms of the lease require Bella Donna to make 10 annual lease payments of $12,619

On January 1, 2016, Bella Donna leased an office building. Terms of the lease require Bella Donna to make 10 annual lease payments of $12,619 beginning on January 1, 2017. A 10% interest rate is implicit in the lease agreement. At what amount should Bella Donna record the lease liability on January 1, 2016, before any lease payments are made?

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