Question $8$ of $9$

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On December $31,2024,$ Oriole Company leased machinery from Ivanhoe Corporation for an agreed$-$upon lease term of $3$ years. Oriole agreed to make annual lease payments of $$13,500,$ beginning on December $31,2024.$ The expected residual value of the machinery at the end of the lease term is $$7,000,$ though Oriole does not guarantee any residual value to Ivanhoe.

What amount will Oriole record as its lease liability on December $31,2024,$ if its incremental borrowing rate is $8\%$ and the implicit rate of the lease is unknown? $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answer to $0$ decimal places, e$.$g$.5,275..$

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Lease liability

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