4 (25 marks) On January 1, 2021, Latvia Inc. enters into an eight-year, non-cancellable lease agreement to lease an airplane to Samba Airlines, with payments required at the end of each year. The following information relates to this agreement: 1. Samba Airlines has the option to purchase the airplane for $7,000,000 at the end of the lease, at which time the airplane's fair value is expected to be $ 12,000,000. 2. The airplane cost Latvia Air $ 30,000,000. It has an estimated useful life of fifteen years, and a residual value of zero at the end of that time (due to technological obsolescence). Samba will pay all executory costs related to the leased airplane. 3. 4. Annual year-end lease payments of $ 4,562,337 will allow Latvia to earn an 8% return on its investment. Instructions a) IFRS. What type of lease is this for the lessor? Justify your answer. Assume Latvia adheres to b) Prepare a lease balance sheet schedule for Sambia for the first year (2021). Round all amounts to the nearest dollar. c) Prepare the necessary journal entries for both parties in 2021