Burt Lid enters into a non-cancellable 8-year lease agreement with Earnie Lid on 1 July 2023. The lease is for an item of machinery that, at the inception of the lease, has a fair value of $1,297,968 The machinery is expected to have an economic life of 9 years, after which time it will have an expected residual value of $260000. There is a bargain purchase option that Burt Ltd will be able to exercise at the end of the 8th year for $290,000. There are to be 8 annual payments of $350,000, the first being made on 30 June 2024. Included within the $350,000 lease payments is an amount of $40,000 representing payment to the lessor for the mourance and maintenance of the equipment. The equipment is to be depreciated on a straight-line basis. (a) Determine the rate of interest implicit in the lease and calculate the present value of the minimum lease payments. In this question implicit rate is(percentage) Proof Enter the proof in the table below Description Calculation Total Periodic leage payments Bargam purchase options Fair value at lease inception (b) Prepare the journal entries in the books of Burt Led for the years ending 30 June 2024 and 30 June 2025. 1" July 2023 Debit Credit Description Debit Amount Credit Amount Debit Right of use asset -Machinery Credit Lease Liability 30" June 2024 Debit Credit Description Debit Amount Credit Amount Interest expenses Lease Liability Service Expenses Cash Depreciation Expenses Accumulated Expenses30" June 2025 Debit Credit Description Debit Amount Credit Amount Interest expenses Lease Liability Service Expenses Cash Depreciation Expenses Accumulated Expenses (c) Prepare the portion of the statement of financial position for the year ending 30 June 2024 and 2025 relating to the lease agget and lease liability. Assets Description 30 June 2024 30 June 2025 Non-Current Assets Right of use agget-Machmery Less accumulated depreciation Liabilities Description 30 June 2024 30 June 2025 Current Liabilities Lease Liability Non-Current Liabilities Lease Liability (d) Prepare the journal entries of Burt Ltd for the years ending 30 June 2024 and 30 June 2025 assuming that Burt Ltd classifies the lease as an operating lease