Macinski Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $70,000 and fair value of $80000. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2017. Sharrer has an incremental borrowing rate of 9%. Macinski expects to earn an 8% return on its investment. The annual rentals of $xxx (to be calculated from data above) are payable on each January 1st, beginning January 1, 2017.

Present value of an ordinary annuity of 1 for 3 periods at 8% : 2.57710

Present value of an ordinary annuity of 1 for 3 periods at 9% : 2.53130

Present value of annuity due of 1 for 3 periods at 8% : 2.78326

Present value of an annuity due of 1 for 3 periods at 9% : 2.75911

Assume Sharrer does not know Macinski's implicit rate and that Sharrer's incremental borrowing rate is 9%.

Additionally, assume that Sharrer incurs initial direct costs of $6000. Please indicate what Sharrer would record for the right-of-use asset at inception of the lease. Round your answer to the nearest whole dollar.