Pronghorn Company manufactures a check$-$in kiosk with an estimated economic life of $12$ years and leases it to Stellar Airlines for a

period of $10$ years. The normal selling price of the equipment is $$265,292,$ and its unguaranteed residual value at the end of the lease

term is estimated to be $$20,100.$ Stellar will pay annual payments of $$39,500$ at the beginning of each year. Pronghorn incurred costs

of $$163,200$ in manufacturing the equipment and $$4,200$ in sales commissions in closing the lease. Pronghorn has determined the

collectibility of the lease payments is probable and that the implicit interest rate is $11\%.$ Stellar Airlines has an incremental borrowing

rate of $11\%.$

Discuss the nature of this lease in relation to the lessee.

This is a

Compute the amount of the initial lease liability. $($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and the final

answer to $0$ decimal places e$.$g$.58,971.)$

The amount of the initial lease liability $