?

In the long-term liabilities section of its balance sheet at
December 31, year 1, Mene Co. reported a capital lease obligation
of $75,000, net of current portion of $1,364. Payments of
$9,000 were made on both January 2, year 2, and January 2, year
3. Mene’s incremental borrowing rate on the date of the lease
was 11% and the lessor’s implicit rate, which was known to Mene,
was 10%. In its December 31, year 2 balance sheet, what amount
should Mene report as capital lease obligation, net of current
portion?