Gidget Corporation reports its financial results in accordance with IFRS. Its year$-$end is December $31.$ The company is in the process of acquiring equipment for its production line delivery on January $1,2023.$ It is presently evaluating whether the company will be better off to lease the asset or to borrow money from its bank to fund the purchase. The two options being considered follow:

Option A: Lease the equipment for eight years. Lease payments would be $$11,950$ per year, first due on the commenecement date of the lease, January $1,2023.$ The asset must be returned to the lessor at the lease term.

Option B: Purchase the equipment for $$78,900,$ funding the purchase with a loan for this amount from its bank. The loan is payable in eight equal annual instalments, with the first payment due on December $31,2023.$ The implicit rate in the lease under Option A is not readily determinable. Gidget's incremental borrowing rate is $6\%$ per annum, which is the same as the rate that the bank will charge under Option B$.$ The equipment has a useful life of eight years and would be depreciated on a straight line basis. At the end of the lease term, the residual value and the asset's useful is expected to be nil.

Required:

a$.$ Determine the present value of the lease payments under Option A$.$

b$.$ Compute the payment that would be required under Option B$.$

c$.$ Calculate and briefly discuss the finanicial impact of each option on Gidget's non$-$current assets, total liabilities, and net income in the first year of asset use.

d$.$ Provide one reason that supports leasing the equipment and one reason that supports borrowing to purchase the asset.