Compass Sdn. Bhd. enter into a lease agreement of Machine F2030 with Redtech Sdn. Bhd. on 1 January 2020. In the agreement, Redtech Sdn. Bhd. is expected to pay deposit of RM100,000 on the day of contract. The next payment will be RM95,000, RM98,000, RM100,000 and RM105,000 which will commence on 1 January 2021. The fair value of the machine on the inception date was RM460,000. The economic life of the machine is 6 years. Machine H2019 was also leased from another company known as SCF Enterprise. Compass Sdn. Bhd. will pay SCF Enterprise 5 installments of RM12,000 each. The machine useful life is 15 years. Cost of capital is 5%. As per MERS 16 Leases, you are required to: (a) Explain the appropriate accounting treatment for each of the machine above for lessor. Justify your answers. (5 marks) (b) Prepare journal entries for both machines from the perspective of lessor for year 2020 and 2021. For asset under finance lease, interest allocation is using sum of digit method. (Note: For both machines, show all relevant workings.) (20 marks)