Sheridan Corporation entered into an operating lease to lease equipment from Sunland, 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, Sunland, Inc. will pay

Sheridan Corporation $$3,700$ as a cash incentive for entering the lease by December $31.$ In relation to the lease agreement, Sheridan

incurred the following costs.

Sheridan's incremental borrowing rate is $8\%.$ If the value of the lease liability is $$68,994,$ what amount will Sheridan 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 $