Case Analysis) Question Ne Part A-Le (CLO2) Part B - Financial Reporting (CLO4) Students have the option to answer either Past A Pat B DO NOT ATTEMPT BOTH PARTS* Part Based on the FASB and the IASB capitalization criteria under accounting for leases. The Japanese Heavy Company and Park Drilling Company have signed a leasing contact for Heavy Oil Drilling Machine of 7 years room lide The lease contact is for 0.714 time of its economic life under 100% fair value which is around 525.000.000 d 10% residual value Based on the night lease amount equation. $6.500.000 as a rental payment have to be honored the beginning of each year in me with the term of arm the esse has to pay all the executory cost which is estimated to be $310.000 cope with the com mentation SLM will be adopted. The interest rate (6) als 60% of the RRR value of the i m ase pay from the lead the lesse 1 Coupute the per perspective 2. De please chec y do bass for the these Part 3 The following information was denied from the records of a manufacturing company operating business in the North Africa (S 000's) Year 1.315 Fixed Asses (Gross) Fred Assets (Net) Assets Intangible Assets Ace Receivable Invernes ROTA TROE Net Open Cashflow 9595999 Gross Pratt The m a ig com is planning to raise fund from the Abu Dhab Com Bank with an Equity of $5.450.000.000 Total Financial Reserves of $51.000.000.000 and Lending Capacity of 519.000.000 Reguir You have been requested to provide full recap analysis of the performance of the actus company for the period Year 1. Year 2 and Year 3 2. Based on the performance of the common rommeboended to give option its intention to raise funds from the Abu Dhabi Commercial Bank 5 of 5