(5) Question 1: AB leases a 100 desk phones for use in one of its offices. The contract term states that there will be an annual rental payment of R9 000 for eight years. The lease arrangement begins on 1 July 20x0. As an incentive to AB, no payment is required in the first year. The desk phones are to be classified as a low-value item. Prepare the correct debit or credit entry that would be required in Entity AB's income statement for the year ended 30 June 20x1 in respect of the above transaction. 1