advanced financial accounting (needed asap)

Question 4 (7 marks) As a supplier of heavy-duty machineries, Pine Ltd leased a machine to Bulla Ltd on an 8-year non- cancellable lease. The following information is available: Lease term 8 years i) Residual value at the end of the term $10 000 li) Bargain purchase option at the end of the term $20 000 iii) Minimum lease payments (at the end of each year) $120 000 $20 000 iv) Service costs included in minimum lease payments Rate implicit in the contract 12% 4.9676 Cumulative present value factor at 12% for 8 years Present value factor at 12% for 8th year 0.4039 Required: a) Which of the items from i) - iv) above will not be included in determining the leased asset and leased liability at the inception of the lease, and explain why not? (3 marks) ANSWER a): b) What is the amount to be recorded as an asset and a liability in the books of the lessee that is in accordance with AASB 16 Leases? (4 marks) SHOW YOUR WORKINGS HA3011 Final Assessment T1 2022 ANSWER: ||