Splish Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to Blossom Airlines for a period of 10 years. The normal selling price of the equipment is $255,322, and its unguaranteed residual value at the end of the lease term is estimated to be $20,600. Blossom will pay annual payments of $36,600 at the beginning of each year. Splish incurred costs of $179,000 in manufacturing the equipment and $3,800 in sales commissions in closing the lease. Splish has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 10%. Blossom Airlines has an incremental borrowing rate of 10%. Click here to view factor tables. (a) Your answer is partially correct. Discuss the nature of this lease in relation to the lessee. This is a Compute the amount of the initial lease liability. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)