Duncan Co. leased equipment to Parker Inc. The equipment cost the lessor $219,900. The appropriate interest rate for this lease is 15%. The annual lease payments are made at the beginning of each year. The lease term is three years. At the end of the lease, Parker will return the equipment and has guaranteed the value at its estimated residual value. The residual value at the end of the lease term is expected to be $42,400.

The various PV factors are listed below

n/i PV of $1 PV, ordinary annuity PV, annuity due

1 period, 15% 0.86957 0.86957 1.00000

2 periods, 15% 0.75614 1.62571 1.86957

3 periods, 15% 0.65752 2.28323 2.62571

What is the Lessees calculation of the initial Right of Use asset and Lease Payable?