On December $31,2024,$ Sandhill Company leased machinery from Carla Vista Corporation for an agreed$-$upon lease term of $3$ years. Sandhill agreed to make annual lease payments of $$20,000,$ beginning on December $31,2024.$ The expected residual value of the machinery at the end of the lease term is $$10,000,$ though Sandhill does not guarantee any residual value to Carla Vista.

What amount will Sandhill 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 $