Current Attempt in Progress

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

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

The equipment's fair value on July $1,2023$ is $$267,000.$

The agreement requires equal rental payments of $$54,300\mathrm{.}00$ beginning on July $1,2023.$

The equipment has an estimated economic life of $5$ years, with an unguaranteed residual value of $$89,200.$ Wildhorse 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 Sandhill.

Wildhorse's incremental borrowing rate is $6\%$ per year. The lessor's implicit rate is not known by Wildhorse Corp.

The yearly rental payment includes $$1,210\mathrm{.}06$ of executory costs related to insurance on the equipment. $1)$ the amount of right of use asset $2)$ prepare the initial entry to reflect the signing of lease agreement $3)$ prepare the journal entries on wildhorse corp book to record the payment and expense related to this lease for the years $2023$ and $2024$ as well as any adjusting j$/$e at its fiscal year ends of december $31,2023$ and $2024.$ wildhours does not use reversing entries