Oriole Corp., which uses IFRS, signs non$-$renewable, non$-$cancellable lease agreement to lease robotic equipment from Pharoah Inc.

The following information concerns the lease agreement.

Inception date

Lease term

Fair value of equipment Jan. $1,2023$

Economic life of leased equipment

Annual rental payments starting Jan. $1,2023$

Option to purchase at the end of the term

Depreciation method

Residual value

Oriole's incremental borrowing rate

January $1,2023$

$5$ years

$$140,000$

$7$ years

$$23,829$

none

Straight$-$line

none

$6\%$

Using $(1)$ factor tables, $(2)$ a financial calculator, or $(3)$ Excel functions, calculate the amount of the right$-$of$-$use asset and lease

liability. $($Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to $0$ decimal places, e$.$g$.5,275.)$

The amount of the right$-$of$-$use asset $

Prepare the initial entry to reflect the signing of the lease agreement. $($List all debit entries before credit entries. 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 $0$ for the amounts.$)$

Date

Account Titles and Explanation

Right$-$of$-$Use Asset

Debit

Jan. $1,$

$2023$