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Sheridan Corporation entered into an operating lease to lease equipment from Sunland, Inc. on January...

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Accounting

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 $
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