On September 1, 2020, Crane Corporation, which uses ASPE, signed a 7-year, non-cancellable lease for a piece of equipment. The terms of the lease called for Crane to make annual payments of $14,080 at the beginning of each lease year, starting September 1, 2020. The equipment has an estimated useful life of 9 years and a $12,000 unguaranteed residual value and a fair value on September 1, 2020, of $100,000. The equipment reverts back to the lessor at the end of the lease term. Crane uses the straight-line method of depreciation for all of its plant assets, has a calendar year end, prepares adjusting journal entries at the end of the fiscal year, and does not use reversing entries. Crane's incremental borrowing rate is 12%, and the lessor's implicit rate is unknown.

Calculate the PV of the future minimum lease payments using any of the following methods: (1) factor tables, (2) a financial calculator, or (3) Excel functions