Diamond Ltd acquired an item of polishing equipment on 1 July 2013 for 440 000. The equipment is expected to have a useful life of 10 years and the straight-line method of depreciation is to be used. It has salvage value of 40000. On 1 July 2015 the equipment is deemed to have a fair value of $424000 and revaluation is undertaken in accordance with the Diamond Ltd policy of measuring property, plant and equipment at fair value. The asset is still usable for next 8 years but the salvage value is determined to be zero. The asset is sold for 356 000 on 1 July 2017. Required: Provide the journal entries necessary at the following dates to account for the above transactions and events. 01/07/2013 01/07/2015 01/07/2017 Queensland Grapes Ltd acquired an item of equipment and enters into a non-cancellable lease agreement with Orchard Plam Ltd on 1 January 2014. The lease consists of the following: - Date of inception: -Duration of lease: Life of leased asset * Lease payments (annual): 4 years 5 years $160,000 (annual) includes $20,000 for Maintenance and insurance costs per annum Guaranteed residual value (Added to final payment): Interest rate $60,000 10% Required: a) Determine the present value of minimum lease rental payment. (2 marks) b) Prepare the journal entries for the Lessor using the Net Method for the following (8 marks) i. l acquisition of the asset by the lessor ii. Transfer of control i Receipt of annual payments for 2014 and 2015 v. Final payment for the year of 2017 c) Explain the differences between a Finance lease and an Operating lease (1.5 marks) d) Why is operating lease called "off-balance sheet financing"? (1.5 marks)