On January 1 , 2017 , Weber , Inc . , entered into two lease contracts . The first lease contract was a six - year lease fo Computer equipment with $15 , 000 annual lease payments due at the end of each year . Weber took possession of the equipment on January 1 , 2017 . The second lease contract was a six - month lease , beginning January 1 2017 . for war ehouse storage space with $1 000 monthly lease payments due the first of each month . Webe made the first month's payment on January 1 2017 . The present value of the lease payments under the fi the first contract ontract is $74 , 520 . The present value of the lease payments under the second contract is $5 , 853