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

Fair value of equipment at lease inception = $57,000

Lease term = 4 years

Economic life of property = 5 years

Implicit interest rate = 7%

Annual lease payment due on December 31 = $20,000

Present value of the minimum lease payments = $60,000

The equipment reverts to the lessor at the end of the lease term. How much is the lease liability at the end of the first year?