A. Muda Leasing Bhd signed an agreement on 1 July 2020 to lease an equipment to Pertiwi Bhd. The term of the non-cancelable lease is five (5) years. The agreement requires equal annual payment of RM65,000 on each 30 June, starting 30 June 2021. The estimated useful life of the equipment is six (6) years with residual value of RM18,000. The residual value of the equipment at the end of the lease term was RM24,000. The market value of the leased asset at the inception date was RM290,000. Implicit rate which is known by both parties is 9% and the borrowing interest rate is 10%. Both companies use straight-line depreciation method for similar assets. Pertiwi Bhd has an option to purchase the equipment for RM21,000 upon the termination of the lease. Both companies close their accounts on 31 December. REQUIRED: (Round your answer to TWO (2) decimal points) (a) Discuss the classification of the lease for Muda Leasing Bhd according to MFRS 16 Leases. (4 Marks) (b) Prepare the related journal entries for both companies at the inception date. (4 Marks) (c) Prepare amortization schedule for Pertiwi Bhd for the first two years and prepare the related journal entries on 31 December 2021 for Pertiwi Bhd. (5 Marks) (d) Prepare the journal entries for both companies to reflect the exercise of the purchase option at the end of the lease term. (2 Marks)