The following information relates to an equipment lease with an inception date of January 1:

Fair value of equipment at lease inception, $56,000

Lease term, 5 years

Economic life of property, 6 years

Implicit interest rate, 7%

Annual lease payment due on December 31, $13,200

The equipment reverts back to the lessor at the end of the lease term.

How much is recorded as the lease liability on the lease inception date? Select one:

a. $56,000

b. $54,123

c. $66,000

d. $57,911