Brief Exercise 20-6 Ivanhoe Ltd., a public company following IFRS 16, recently signed a lease for equipment from Costner Ltd. The lease term is 3 years and requires equal rental payments of $40,568 at the beginning of each year. The equipment has a fair value at the lease's inception of $116,000, an estimated useful life of 3 years, and no residual value. Ivanhoe pays all executory costs directly to third parties. The appropriate interest rate is 5%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. 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. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to o decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Right-of-Use Asset Lease Liability Cash