On December $31,2024,$ Sheridan Company leased machinery from Sunland Corporation for an agreed$-$upon lease term of $3$ years. Sheridan agreed to make annual lease payments of $$16,000,$ beginning on December $31,2024.$ The expected residual value of the machinery at the end of the lease term is $$8,000.$

$($a$)$

Your answer is incorrect.

What amount will Sheridan record as its lease liability on December $31,2024,$ if its incremental borrowing rate is $4\%$ 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

$