R&R management signed a 20 year financing lease agreement on Jan 1,2015. The present value of the lease agreement is $85,136. Annual lease payment $10,000 is due on Dec 31 every year. The first least payment is due on Dec 31,2015. The interest rate is 10%. How much would be the current portion of the lease liability on Dec 31,2015's statement of financial position?

The answer is $1,635. I was hoping someone could explain me why.

Thank you.