1 January 2018 Actuarial Method, Payment In Artears RM115,000 RM50,000 3 years Date of arrangement Lease term Fair Value of machine Lease rental payment per annum Lease term Useful Ife Estimated residual value Interest rate Cancelation policy End of lease term 5 years RM30,000 6% Allowed with 5% penalty on lessee Machine will be return to lessor REQURED: (a) Calculate the finance charge. (2 marks) (b) Allocate the finance charge over the 3 years lease term. (7 marks) (c) Prepare the journal entries: i. To recognize as set and liability upon inception of the lease. (2 marks) ii. To record rental payment made on 2018. 1 (2 marks) To record lease interest expense for 2019. (2 marks) iv. To record depreciation charge for 2020. (2 marks)