Sunland Company, a machinery dealer leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires an equal annual payment of $34,300 at the beginning of each year. The first payment is received on January 1, 2020. Sunland had purchased the machine during 2019 for $140,000. Collectability of lease payments by Sunland is probable. Sunland set the annual rental to endure a 8 % rate of return. The machine has an economic life of 10 years with no residual value and reverts to Sunland at the termination of the lease. Assume that Dexter Corporation does not know the rate implicit in the lease used by Sunland and Dexters incremental borrowing rate is 10 %. In addition, assume that Dexter incurs the initial direct cost of $16,000. Compute the amount of the lease liability and right-of-use asset for Dexter.