On July $1,2023,$ Blossom Corp., which uses IFRS, signs a $4-$year, non$-$cancellable lease agreement to lease a equipment from

Wildhorse Ltd$.$ The following information concerns the lease agreement.

The equipment's fair value on July $1,2023$ is $$265,000.$

The agreement requires equal rental payments of $$56,500\mathrm{.}00$ beginning on July $1,2023.$

The equipment has an estimated economic life of $5$ years, with an unguaranteed residual value of $$81,900.$ Blossom Corp.

depreciates similar equipment using the straight$-$line method, with no residual value.

The lease is non$-$renewable. At the termination of the lease, the equipment reverts to Wildhorse.

Blossom's incremental borrowing rate is $7\%$ per year. The lessor's implicit rate is not known by Blossom Corp.

The yearly rental payment includes $$3,248\mathrm{.}57$ of executory costs related to insurance on the equipment. Prepare the initial entry to reflect the signing of the lease agreement.