Greenville Limited prepares its financial statements to 31 December each year and a number of issues have still to be resolved before the financial statements for the year ended 31 December 2020 can be finalised: Greenville Limited entered a four-year lease with McKinney Limited for an item of machinery on 1 January 2020. On this date, the machinery had a remaining useful life of five years. The leasing arrangement required an initial payment of 20,000 on 1 January 2020 and four annual payments of 80,000 on 31 December each year. The amounts due on 1 January and 31 December 2020 were paid on time. The direct costs associated with the lease were 15,000 and these were paid on 1 January 2020. The rate of interest implicit in the lease is 10%. Requirement (a) Calculate the value of the lease liability on 1 January 2020. 3 Marks (b) Calculate the value of the right of use of asset at 1 January 2020. 3 Marks (c) Prepare the extracts of the financial statements of Greenville Limited for the year ended 31 December 2020. 5 Marks (d) Prepare the journals to record the leasing arrangement in the financial statements of Greenville Limited for the year ended 31 December 2020.