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Pharoah Corporation entered into an operating lease to lease equipment from Sheridan, Inc. on January $1,2025.$ The lease calls for annual lease payments of $$16,000,$ beginning on December $31,$ for each of the $5$ years of the lease. In addition, Sheridan, Inc. will pay Pharoah Corporation $$2,600$ as a cash incentive for entering the lease by December $31.$ In relation to the lease agreement, Pharoah incurred the following costs.

Commissions for selling agents

Internal engineering costs

$$600$

$500$

$2,400$

Pharoah's incremental borrowing rate is $8\%.$ If the value of the lease liability is $$68,994,$ what amount will Pharoah record as the value of the right$-$of$-$use asset on January $1,2025,$ at commencement of the operating lease?

Value of the right$-$of$-$use asset

$

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