Oriole Ltd$.,$ a public company following IFRS, recently signed a lease for equipment from Costner Ltd$.$ The lease term is $7$ years and

requires equal rental payments of $$19,049$ at the beginning of each year. The equipment has a fair value at the lease's inception of

$$104,500,$ an estimated useful life of $7$ years, and no residual value. Oriole pays all executory costs directly to third parties. The

appropriate interest rate is $9\%.$

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 tables, a financial calculator, or Excel functions, calculate the amount of the right$-$of$-$use asset and lease liability. Prepare the

initial entry to reflect the signing of the lease agreement and the first payment under the lease. $($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. Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to $0$ decimal places,

e$.$g$.5,275.)$

Account Titles and Explanation

Debit

Credit