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. Smith leased a machine and appropriately accounted for the lease as a long-term finance lease. Smiths fifteen annual lease payments will be of $750,000.

. Smith leased a machine and appropriately accounted for the lease as a long-term finance lease. Smiths fifteen annual lease payments will be of $750,000. Smiths first lease payment is due upon the inception of the lease. Smith used an interest rate of 5% relating to this lease. What amount will Smith record as a lease liability at the inception of the lease?

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