Accounting by lessee and lessor   LO3, 4, 7 Albert Ltd entered into an agreement on 1 July 2019 to lease a processing plant with a fair value of $467 100 to Fat Ltd. The terms of the lease agreement were as follows. Lease term 3 years Economic life of plant 5 years Annual rental payment, in arrears (commencing 30/6/20) $165 000 Residual value of plant at end of lease term $90 000 Residual value guarantee by Fat Ltd $60 000 Interest rate implicit in the lease 6% The lease is cancellable, but only with the permission of the lessor. At the end of the lease term, the plant is to be returned to Albert Ltd. In setting up the lease agreement Albert Ltd incurred $9414 in legal fees and stamp duty costs. The annual rental payment includes $15 000 to reimburse Albert Ltd for maintenance costs incurred on behalf of Fat Ltd. Required 1. Prepare a lease payments schedule and the journal entries in the records of Fat Ltd for the year ended 30 June 2020. Show all workings. 2. Classify the lease from Albert Ltd perspective. Justify your answer. 3. Prepare a lease receipts schedule and the journal entries in the records of Albert Ltd for the year ended 30 June 2020. Show all workings. 4. Explain how and why your answers to requirements 1 and 2 would change if the lease agreement could be cancelled at any time without penalty