Technoid Inc, sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2021. The manufacturing cost of the computers was $18 million.

This noncancelable lease had the following terms

1 Lease payments $3,035,786 semiannually, first payment at January 1, 2021; remaining payments at June 30 and December 31 each year through June 30, 2025.

2 term 5 years ( 10 semiannual payments)

3 No residual value, no purchase option,

4 Economic life of equipment 5 years

5 Implicit interest rate and lessee's incremental borrowing rate 8% semiannually

6 Fair value of the computers at January 1, 2021, S22 million.

What is the outstanding balance of the lease liability in Lone Star's June 30, 2021 balance sheet