On January 1, 2027, CBD Company leased equipment from Lee Leasing Company. The lease terms require annual payments of $100,000 for four years with the first payment being due on December 31, 2027. The interest rate on the lease is 10%, and CBD Company will amortize the leased asset using the straight line method.

At January 1, 2027, the equipment had an eight year remaining useful life and the lease contract requires the equipment to be returned to Lee Leasing Company at the end of the lease Calculate the lease liability balance at December 31, 2030 after the third lease payment is made.

Please use the time value of money table factors pictured below to solve