Blossom Ltd., a public company following IFRS 16, recently signed a lease for equipment from Costner Ltd. The lease term is 5 years and requires equal rental payments of $26,545 at the beginning of each year. The equipment has a fair value at the leases inception of $122,900, an estimated useful life of 5 years, and no residual value. Blossom pays all executory costs directly to third parties. The appropriate interest rate is 4%. Using tables, a financial calculator, or Excel functions, calculate the amount of the right-of-use asset and lease liability. Prepare the initial entry to reflect the signing of the lease agreement and the first payment under the lease.