On January $1,2025,$ Nelson Co$.$ leased a building to Wise Inc. The relevant information related to the lease is as follows.

The lease arrangement is for $10$ years. The building is expected to have a residual value at the end of the lease of $$3,500,000$

$($unguaranteed$).$

The leased building has a cost of $$4,000,000$ and was purchased for cash on January $1,2025.$

The building is depreciated on a straight$-$line basis. Its estimated economic life is $50$ years with no salvage value.

Lease payments are $$275,000$ per year and are made at the beginning of the year.

Wise has an incremental borrowing rate of $8\%,$ and the rate implicit in the lease is unknown to Wise.If Wise paid $$30,000$ to a real estate broker on January $1,2025,$ as a fee for finding the lessor, what is the initial measurement of

the right$-$of$-$use asset? $($Round answers to $0$ decimal places, e$.$g$.5,275.)$

Right$-$of$-$use asset $

eTextbook and Media

List of Accounts

Both the lessor and the lessee are on a calendar$-$year basis.