Frisco Corp. $($lessee$)$ entered into a $7-$year finance lease with Bovine Equipment $($lessor$)$ on January $1,$ Year $2.$ Lease payments of $$47,500$ are due annually beginning on December $31,$ Year $2.$ The interest rate implicit in the lease of $8\%$ is known to Frisco. Frisco$$s incremental borrowing rate is $5\%.$ The fair value of the leased asset on the date of the lease is $$315,000.$ The useful life of the equipment is $8$ years.

$7$ years

$8$ years

The present value of an ordinary annuity at $5\%$

$5\mathrm{.}7864$

$6\mathrm{.}4632$

The present value of an ordinary annuity at $8\%$

$5\mathrm{.}2064$

$5\mathrm{.}7466$

What amount should Frisco Corp. record for the right$-$of$-$use asset on its balance sheet on the lease commencement date?

$$247,304$

$$307,002$

$$274,854$

$$272,964$