Teal Mountain AG leases an automobile with a fair value of 14,154 from Simon Motors, on the following terms.

1.		Non-cancelable term of 50 months.
2.		Rental of 300 per month (at the beginning of each month). (The present value at 0.5% per month is 13,309.)
3.		Teal Mountain guarantees a residual value of 1,230 (the present value at 0.5% per month is 569). Teal Mountain expects the probable residual value to be 1,230 at the end of the lease term.
4.		Estimated economic life of the automobile is 60 months.
5.		Teal Mountains incremental borrowing rate is 6% a year (0.5% a month). Simons implicit rate is unknown.

Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

WHAT IS THE PRESENT VALUE OF THE LEASE PAYMENTS TO DETERMINE THE LEASE LIABILITY?