On January 1, 2020, Blossom Corp., which uses IFRS, signs a 10-year, non-cancellable lease agreement to lease a specialty lathe from Liu Inc. The following information concerns the lease agreement. 1. The agreement requires equal rental payments of $75,975 beginning on January 1, 2020. 2. The lathe's fair value on January 1, 2020, is $500,000. 3. The lathe has an estimated economic life of 12 years, with an unguaranteed residual value of $17,000. Blossom Corp. depreciates similar equipment using the straight-line method. 4. The lease is non-renewable. At the termination of the lease, the lathe reverts to the lessor. 5. Blossom's incremental borrowing rate is 10% per year. The lessor's implicit rate is not known by Blossom Corp. 6. The yearly rental payment includes $1.999.82 of executory costs related to insurance on the lathe. Assume this is a manufacturer/dealer lease. 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 (1) factor tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the right-of-use asset and lease liability and prepare the initial entry to reflect the signing of the lease agreement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places, e.g. 5,275.25.) Date Account Titles and Explanation 1/1/20 Right-of-Use Asset Debit Credit 500000 Insurance Expense Lease Liability Cash Payment Excluding Executory Date Costs Jan. 1, 2020 $ Jan. 1, 2021 Jan. 1, 2022 Jan. 1, 2023 Jan. 1, 2024 Jan. 1, 2025 Jan. 1, 2026) Jan. 1, 2027 Jan. 1, 2028 Jan. 1, 2029 Interest on Unpaid Obligation Reduction of Lease Obligation. Balance of Lease Obligation $