Blossom Ltd., a public company following IFRS 16, recently signed a lease for equipment from Costner Ltd. The lease term is 7 years and requires equal rental payments of $19,960 at the beginning of each year. The equipment has a fair value at the lease's inception of $115,100, an estimated useful life of 7 years, and no residual value. Blossom pays all executory costs directly to third parties. The appropriate interest rate is 7%.

calculate the amount of the right-of-use asset and lease liability and prepare the initial entry to reflect the signing of the lease agreement and the first payment under the lease