Farm Ltd leases some parcels of land from their owner for a period of 10 years at a time. The lease agreement can be cancelled, but a significant penalty will be incurred by Farm Ltd. The lease payments required include a payment up-front of $300 000, followed by another 9 payments of equal value at the end of every year up to the end of the ninth year. The implicit rate in the lease is 10%. PV of 9 payments at 10% is 5.7590. 

Required 

Prepare the journal entries for first three years for Farm Ltd to recognise the lease including for amortisation of lease. You can workout lease payments schedule in your notes and is not required as part of response.