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YOUR Company leases a machine from My Company on July 1.20x1. Lease payments of $14,806 are due cach July 1, beginning July 1, 20x1. The

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YOUR Company leases a machine from My Company on July 1.20x1. Lease payments of $14,806 are due cach July 1, beginning July 1, 20x1. The lease qualifies as a finance lease for YOUR Company and a sales-type lease for My Company. The incremental borrowing rate for YOUR Company is 10%. The lessor's implicit rate is 8%. The carrying value on the books of My Company is $70,000 The lease term is 8 years. The useful le of the machine is 10 years. The fair value of the machine at the inception of the lease is $100,000. The expected residual value at the end of 8 years is $15,000 and at the end of 10 years is $6,000. The lessee guarantees $9,000 of the salvage value. YOUR Company capitalized the lease at that value. $91,892. What will the book value of the lease liability be at the end of the lease term

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