Blue Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to lease robotic equipment from Xiu Inc. The following information concerns the lease agreement.

Inception date		January 1, 2020
Lease term		5 years
Fair value of equipment Jan. 1, 2020		$270,000
Economic life of leased equipment		7 years
Annual rental payments starting Jan. 1, 2020		$48,399
Option to purchase at the end of the term		none
Depreciation method		Straight-line
Residual value		none
Blues incremental borrowing rate		9%

The amount of the right-of-use asset= $ ?

Prepare the initial entry to reflect the signing of the lease agreement.

Date

Account Titles and Explanation

Debit

Credit

Jan. 1, 2020