On December $31,2024,$ Carla Vista Company leased machinery from Sandhill Corporation for an agreed$-$upon lease term of $3$ years. Carla Vista agreed to make annual lease payments of $$13,000,$ beginning on December $31,2024.$ The expected residual value of the $-$ machinery at the end of the lease term is $$7,000.$

$($a$)$

What amount will Carla Vista record as its lease liability on December $31,2024,$ if its incremental borrowing rate is $5\%$ and the implicit rate of the lease is unknown? $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answer to $0$ decimal places, e$.$g$.5,275.)$

Click here to view factor tables.

Lease liability

$

On December $31,2024,$ Carla Vista Company leased machinery from Sandhill Corporation for an agreed$-$upon lease term of $3$ years. Carla Vista agreed to make annual lease payments of $$13,000,$ beginning on December $31,2024.$ The expected residual value of the $-$ machinery at the end of the lease term is $$7,000.$

$($a$)$

What amount will Carla Vista record as its lease liability on December $31,2024,$ if its incremental borrowing rate is $5\%$ and the implicit rate of the lease is unknown? $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answer to $0$ decimal places, e$.$g$.5,275.)$

Click here to view factor tables.

Lease liability

$