Lessee Company enters into a $6-$year finance lease of non$-$specialized equipment with Lessor Company on January $1,2020.$ Lessee has agreed to pay $$112,000$ annually beginning immediately on January $1,2020.$ The lessor estimates the residual value of the equipment to be $$20,000$ at lease end, and the lessee guarantees the residual value. The economic life of the asset is $7$ years. The lessee's incremental borrowing rate is $7\%$ and the lessor's implicit rate is not readily determinable by the lessee company.

Compute the value of the lease liability for the lessee on January $1,2020,$ under the following separate scenarios.

The lessee estimates that the underlying asset will have a fair value of $$20,000$ at the end of the lease.

The lessee estimates that the underlying asset will have a fair value of $$8,000$ at the end of the lease.