(a) On 1 January 20x1, Daya entered into a 3-year lease for a machine. The contract contains an option to extend the lease term for a further year. Daya believes that it is reasonably certain to exercise this option. Lease payments are RM12,000 p.a. for the initial term and RM20,000 p.a. for the option period. All payments are due at the end of the year. To obtain the lease, Daya incurred direct cost of RM4,000. The interest rate within the lease is not readily determinable. Daya's incremental rate of borrowing is 10%. Required: Determine the initial carrying amount of the lease liability and the right-of -use asset and provide the double entry needed to record these amounts in Daya's financial records. (9 marks) (b) Explain the term "low value assets" and give FOUR (4) examples of low value assets (6 marks) (c) On 1 January 20x1, Pali Bhd sells an item of machinery to Ann Bhd for its fair value of RM10 million. The asset had a carrying value of RM7.1 million prior to the sale. This sale represents the satisfaction of a performance obligation, in accordance with MFRS115 Revenue from Contracts with Customers. Pali Bhd enters into a contract with Ann Bhd for the right to use the asset for the next five years. Annual payments of RM500,000 are due at the end of each year. The interest rate implicit in the lease is 5%. The remaining useful life of the machine is much greater than the lease term.Required: (i) Determine the present value of the annual lease payment. (5 marks) (ii) Explain how Pali Bhd will account for the transaction on 1 January 20):]. (Note: Show the journal entry as part of your answer)