King Tours is considering the purchase of a mini$-$bus for R$550000.$ King Tours has the option to buy the mini$-$bus in cash or to lease. The lease will be a five$-$year lease and it will require a down payment of R$150000$ and further payments of R$100000$ per year.

If the mini$-$bus is owned, the service and maintenance charges will be R$20000$ per annum but if the mini$-$bus is leased, this charge is carried by the lessor. The residual value of the mini$-$bus in five years' time is expected to be R$50000.$ King Tours uses the straight$-$line method of depreciation. The tax rate is $30\%$ and the after$-$tax cost of debt is $10\%$

$4\mathrm{.}1$ Calculate the cost of owing against the cost of leasing and advise on the best option for King Tours. Justify your answer.

$4\mathrm{.}2$ Discuss the five tests which are considered in IAS $17$ to determine whether a lease is a finance lease.