4. United Motors Company in Muscat is operating a business of selling and leasing of Motor trucks for various purpose since 2015. The Splash water company in Ibri made an agreement of lease with United Motors, 4 trucks at a cost of RO 115,000 each during the year 2017. The lease term is 8 years and interest charged as 8% p.a. in addition to that, the lessee provided with the following: Fair value - RO 460,000 Residual value - Nil Future value - Nil Annual payment- RO 79,600 at the beginning After completion of the lease period, the lessee plan to purchase 2 trucks and renew the remaining. Suppose you are working as a finance appraiser of Splash Water Company, analyze this case and provide with suitable information for the following to the company. a) Do you think the decision of lessee is acceptable as per the condition of the leased asset? If your answer is yes or no, write any two reasons of why? b) Briefly write about the criteria to be followed by the lessee to purchase and extend the agreement of Leased asset as per ASPE and mention which one is classified as capital lease or operating lease for the leased asset of truck. c) Calculate the Present Value of the above leasing and show the Amortization table of the above lessee. 4. United Motors Company in Muscat is operating a business of selling and leasing of Motor trucks for various purpose since 2015. The Splash water company in Ibri made an agreement of lease with United Motors, 4 trucks at a cost of RO 115,000 each during the year 2017. The lease term is 8 years and interest charged as 8% p.a. in addition to that, the lessee provided with the following: Fair value - RO 460,000 Residual value - Nil Future value - Nil Annual payment- RO 79,600 at the beginning After completion of the lease period, the lessee plan to purchase 2 trucks and renew the remaining. Suppose you are working as a finance appraiser of Splash Water Company, analyze this case and provide with suitable information for the following to the company. a) Do you think the decision of lessee is acceptable as per the condition of the leased asset? If your answer is yes or no, write any two reasons of why? b) Briefly write about the criteria to be followed by the lessee to purchase and extend the agreement of Leased asset as per ASPE and mention which one is classified as capital lease or operating lease for the leased asset of truck. c) Calculate the Present Value of the above leasing and show the Amortization table of the above lessee