2 [11 marks] Rivalty Inc. and UltraTech Inc. entered into a lease agreement on December 20, 2010. According the terms in the agreement, Rivalty Inc. rented network devices from UltraTech Inc. for five years starting from January 1, 2011. An upfront amount of $300,000 was paid by Rivalty Inc. on the commencement date of the lease. Annual rental for the lease was $200,000, paid at the end of each year. Rivalty Inc. provided a guarantee to UltraTech Inc. that the network devices should have the residual value of $50,000. In addition, Rivalty Inc.'s parent company further made a guarantee of $50,000. The manufacturer of the network devices, which was the parent company of UltraTech Inc., provided additional guarantee of $100,000. At the inception of the lease, Rivalty Inc. determined the present value of minimum lease payments to be $938,310. The fair value of the leased devices was $1,000,000. UltraTech Inc. classified the lease as a finance lease. The interest rate implicit in the lease was 20%. Required: 1. Calculate finance charge and ending balance of finance lease obligation Rivalty Inc. from 2011 to 2015. [5.5 marks] 2. Calculate finance income and ending balance of finance lease receivable for UltraTech Inc. from 2011 to 2015. [5.5 marks]