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Riverbed Corporation entered into an operating lease to lease equipment from Highlander, Inc. on January 1, 2020. The lease calls for annual lease payments of

Riverbed Corporation entered into an operating lease to lease equipment from Highlander, Inc. on January 1, 2020. The lease calls for annual lease payments of $9,000, beginning on December 31, for each of the 5 years of the lease. In addition, Highlander, Inc. will pay Riverbed Corporation $2,000 as a cash incentive for entering the lease by December 31. In relation to the lease agreement, Riverbed incurred the following costs. Commissions for selling agents $600 Internal engineering costs 500 Legal fees resulting from the execution of the lease 4,000 Riverbeds incremental borrowing rate is 4%. If the value of the lease liability is $41,669, what amount will Riverbed record as the value of the right-of-use asset on January 1, 2020, at commencement of the operating lease? The answer for the right-of-use asset is also NOT $44,769.

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