10.11 Accounting by lessee and lessor LO2, 3, 6 Albert Ltd entered into an agreement on 1 July 2022 to lease a processing plant with a fair value of $569 230 to Einstein Ltd. The terms of the lease agreement were as follows. Lease term Economic life of plant Annual rental payment, in arrears (commencing 30/6/23) Residual value of plant at end of lease term Residual value guarantee by Einstein Ltd Interest rate implicit in the lease The lease is cancellable, but only with the permission of the lessor. 3 years 5 years $225 000 $50 000 $20 000 6% 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 $7350 in legal fees and stamp duty costs. The annual rental payment includes $25 000 to reimburse Albert Ltd for maintenance costs incurred on behalf of Einstein Ltd. Required 1. Prepare a lease payments schedule and the journal entries in the records of Einstein Ltd for the year ended 30 June 2023. 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 2023. 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