1. please help me answer the question in the picture

Shipbuilders Ltd leased a machine from Sails Lid on 1 July 2015. The lease qualifies as a finance lease and requires ton annual payments of $20,000 beginning immeurately. The lease specifies an interest rate of 12% and a purchase option of $20,000 at the end of the ninth year, even though the machine's estimated value on that date is $40,000. The machine has a useful life of twelve (12 years) and a fair value of $150,000. It will be depreciated on a straight line basis. Required a Why is ths lease classified as a finance lease rather than an operating lease? See SAS B b As you have to account for an expense no matter what type of lease, why is it important to know what type of lease it is? [2 marks] c. What amount should Shipbuilders Ltd record as the lease liability at the te beginning of the lease term? [3 marks) an d According to the requirements of AASB 117, prepare general journal entries in the books of the lessee, Shipbuilders Ltd for 30 June 2016. Narrations are not required. Round all calculations to the nearest dollar where necessary and show all your workings. 7999333