McCormick Ltd., a public company following IFRS 16, recorded a right-of-use asset and lease liability at $150,000 on May 1, 2017. The interest rate is 10%. McCormick made the first lease payment of $25,561 on May 1, 2017. The lease requires a total of eight annual payments. The equipment has a useful life of eight years with no residual value. Prepare McCormick's December 31, 2017 adjusting entries.