Diaz Creamery, leases its ice cream making equipment from Megan Finance Company under the following lease terms:

The lease term is five years, non-cancellable, and requires equal rental payments of $56,926 due at the beginning of each year starting January 1, 2019.

Upon inception of the lease on January 1, 2019, Megan purchased the equipment at its fair value of $280,000 and immediately transferred it to Diaz Creamery. The equipment has an estimated economic life of five years, the expected payout under the residual value guarantee is $15,000.

The lease contains no renewal options, and the equipment reverts to Megan Finance Company upon termination of the lease.

Diaz's incremental borrowing rate is 3.8%; the rate implicit in the lease is also 5%. The implicit rate in the lease is known by Diaz.

Diaz depreciates similar equipment that it owns on a straight-line basis.

Both companies have December 31 year-ends.

Required:

a. Determine the amount the right-of use asset and lease liability are initially measured at from the perspective of the lessee.