Reference no: EM132630953

On 1 July 20X1 Lessee Ltd leased some equipment from Lessor Ltd. The details of the lease arrangement are as follows:

1. The lease term was for 3 years
2. The interest rate implicit in the arrangement was 5%
3. The lessee paid an amount of $34,000 per annum to the lessor commencing on 30 June 20X2
4. Included in the annual amount payable by the lessee to the lessor was an amount of $3,000 for maintenance and repairs
5. The residual value at the end of the lease term was $15,000 of this, an amount of $13,000 was guaranteed by the lessee
6. $3,000 is the amount of the residual value guarantee that was expected to be payable by the lessee to the lessor at the end of the lease term

Required

Problem 1: What is the amount that would be recognised as the lease liability by Lessee Ltd at the commencement of the lease? (Please round your answer to the nearest dollar and do not include any spaces or dollar signs in your answer.)