QUESTIONS Psi Co. leased property to Omega, Inc. An annual payment of $22,000 is due at the beginning of each year of the 7-year term of the lease and includes $2,000 of executory costs for property taxes and insurance. The taxes and insurance amount will be adjusted each year to the actual amounts. The first payment is due immediately. Psi Co. requires a 7% rate of return. Omega guarantees a residual value of $25,000, which is equal to the expected residual value at the end of the lease. The present value factor for an annuity due for 7 years at 7% is 5.767. The present value factor for a single sum for 7 years at 7 is 0.623. The lease is appropriately recorded as a finance lease by Omega. What is the initial lease liability recorded by Omega at the beginning of the first year of the lease (before recording the first payment)? $123,991 $126,874 $132,068 $130,915 $115,340