Cullumber Ltd$.,$ a public compary following IFRS, recently signed a lease for equipment from Costner Ltd$.$ The lease

term is $3$ years and requires equal rental payments of $$40,097$ at the beginning of each year. The equipment has a fair

value at the lease's inception of $$111,600,$ an estimated useful life of $3$ years, and no residual value. Cullumber pays all

evecutory costs directly to third parties. The appropriate interest rate is $8\%.$

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$.5,275.)$