1 July x3. The te N is RM74.74 / Less (1+0.12 Eucamore Bhd arranges to lease Tanges to lease a machine from Oak Bhd starting on uly x3. The terms of the lease are that Sycamore will make three an payments to Oak of RM30.000 Iuly x3 The purchase price of the machine for cash and the cost to Oak Lesson ch. The first payment will be made on = 1.40 RM74,746. The interest rate implicit in the lease is 22%. Each company 30000 makes up its accounts to 30 June. Explain the dilference between a finance lease and an operating lease. poy in advance 200 State into which category the above arrangement falls and explan hance lease and an operating lease. sou why. h Assuming that the lease is a finance lease, prepare the statement on profit or loss and statement of financial position entries in the books on - 7 statement of MERS 117 . CHAPTER 2 510 Sycamore and Oak as far as the information permits. For the purpo of these calculations, interest should be apportioned in accordance with the actuarial method. c. Show how the entries in the books of Oak will be affected if the sum of-digits method (rule of 78) is used to apportion the interest and the three annual payments are made in arrears