McCormick Ltd., a public company following IFRS 16, recorded a right-of-use asset and lease liability at $170,000 on May 1, 2020. The interest rate is 30% . McCornick made the first lease payment of $35,761 on May 1, 2020. The lease requires a total of eight annual payments. The equipment has a useful lif of eight years with no residual value. Prepare McCornick's December 31, 2020 adjusting entries. Round to the nearest dollar.