3. Saham City signed a lease agreement with Samad Builders for construction of a new warehouse at a cost of OMR 10 million and lease it to the city for 25 years. The city agrees to make and initial payment I of OMR 750,000 and an annual payment in the same amount for next 24 years. An assumed borrowing rate of 6% was used in calculating lease payment. Upon completion, the building had an appraised market value of OMR 11 million and an estimated life of 30 years. Required: a. Using the present value of an annuity for 24 periods at 6% is 12.5504, determine whether City should consider this lease agreement a capital lease. (0.5 mark) b. Provide the journal entries the City should make for both the capital project fund and governmental activities at the government-wide level. (1.5 marks)