Herba Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to lease robotic equipment from Lu Inc. The following information concerns the lease agreement. Inception date Lease term Fair value of equipment Jan. 1, 2020 Economic life of leased equipment Annual rental payments 1-Jan-20 5 years $290,000 years $59,361 starting Jan. 1, 2020 Option to purchase at the none end of the term Depreciation method Straight-line Residual value $16,000 6% (Guaranteed) Herba's incremental borrowing rate 1. Calculate the amount of the right-of-use asset and lease liability and prepare the initial entry to reflect the signing of the lease agreement. (4 marks) 2. Prepare the journal entries on Herba Corp.'s books to record the payments related to this lease for the years 2020 and 2021 as well as any adjusting journal entries at its fiscal year ends of December 31, 2020 and 2021. (8 marks) 3. Calculate the balance of in the lease liability on January 1, 2023 after the annual payment has been made. (2 marks) 4. Assume that a bargain purchase option for $16,000 exists in addition to the information listed above. Calculate the annual depreciation expense. (3 marks)