Laura Ltd manufactures specialised machinery for both sale and lease. On $1$ July $2019,$ Laura Ltd leased one of these machines to Poppy Ltd$,$ incurring $$888$ in costs to prepare and execute

the lease document. Poppy Ltd incurred $$650$ in costs to negotiate the agreement. The machine being leased cost Laura Ltd $$55,072$ to manufacture. The machine is expected to have an

economic life of $6$ years, after which time it will have a residual value of $$950.$ The lease agreement details are as follows.

Length of lease: $5$ years

Commencement date: $1$ July $2019$

Annual lease payment, payable $30$ June each year commencing $30$ June $2020$: $$16,000$

Residual value at the end of the lease term, fully guaranteed by Poppy Ltd: $$8,000$

Interest rate implicit in the lease: $8\%$

All insurance and maintenance costs are paid by Laura Ltd and amount to $$3,000$ per year and will be reimbursed by Poppy Ltd by being included in the annual lease payment of $$16,000.$

The machinery will be depreciated on a straight$-$line basis. It is expected that Poppy Ltd will purchase the machine from Laura Ltd at the end of the lease

Which of the following statements are correct?

SELECT ALL CORRECT RESPONSES

Select one or more:

a$.$ The $$650$ Poppy incurred in negotiating the lease forms part of the Poppy's capitalised lease asset or ROU value.

b$.$ The $$888$ incurred in preparing and executing the lease document should be capitalised in lease payable by Poppy at the inception of the lease

c$.$ The $$888$ incurred in preparing and executing the lease document should be capitalised in lease receivable by Laura at the inception of the lease.

d$.$ Laura Ltd is a direct finance or financier type lessor

e$.$ Laura Ltd is a dealer manufacturer type lessor.

f$.$ The $$888$ incurred in preparing and executing the lease document should be expensed by Laura Ltd$.$Laura Ltd manufactures specialised machinery for both sale and lease. On $1$ July $2019,$ Laura Ltd leased one of these machines to Poppy Ltd$,$ incurring $$888$ in costs to prepare and execute the lease document. Poppy Ltd incurred $$650$ in costs to negotiate the agreement. The machine being leased cost Laura Ltd $$55,072$ to manufacture. The machine is expected to have an

economic life of $6$ years, after which time it will have a residual value of $$950.$ The lease agreement details are as follows.

Length of lease: $5$ years

Commencement date: $1$ July $2019$

$$ Annual lease payment, payable $30$ June each year commencing $30$ June $2020$: $$16,000$

Recidual value at the end of the lease term, fully quaranteed by Poppy Ltd: $$8,000$

$*$ Interest rate implicit in the lease: $8\%$

All insurance and maintenance costs are paid by Laura Ltd and amount to $$3,000$ per year and will be reimbursed by Poppy Ltd by being included in the annual lease payment of $$16,000.$

The machinery will be depreciated on a straight$-$line basis. It is expected that Poppy Ltd will purchase the machine from Laura Ltd at the end of the lease Which of the following statements are correct?

SELECT ALL CORRECT RESPONSES

select one or more.

$$ a$.$ The $$650$ Poppy incurred in negotiating the lease forms part of the Poppy's capitalised lease asset or ROU value.

$$ b$.$ The $$888$ incurred in preparing and executing the lease document should be capitalised in lease payable by Poppy at the inception of the lease

$$ c$.$ The $$888$ incurred in preparing and executing the lease document should be capitalised in lease receivable by Laura at the inception of the lease

d$.$ Laura Ltd is a direct finance or financier type lessor

e$.$ Laura Ltd is a dealer manufacturer type lessor.

f$.$ The $$888$ incurred in preparing and executing the lease document should be expense by Laura