On Jenvary 1,2020, Johnson Company entered into a 10-year lease agreement with Woods, Inc, to lease equipment. Annual lease payments of $10,000 are payable at the end of eech year and the unguarantoed residual value was $5,000. Johnson knows that the lessor expects a 10% return on the lease. Johnson has a 12% incremental borrowing rate. The equipment is expected to nave an estimated uselul life of 10 years and the lease is classified as a finance lease. What is the present value of the lease paymenta which should be cap'talized on Johneon Company's books on Janwary 1,2020