Lease Question On January 1, 2016, Kekwa Textiles leased a building with two acres of land from Zul Arifin development. The lease is for 10 years. No purchase option exists and the property will revert to Zul Arifin at the end of the lease. The building and land, combined to have a fair market value on 1 January 2016, at RM 1,450,000; with the estimated value of the land was RM400,000. The building has an estimated life of 20 years with a residual value of RM150,000. The lease calls for Kekwa to assume all costs of ownership and to make annual payments of RM200,000 due at the beginning of each year. Kekua uses the straight-line method of depreciation and pays 10% interest on borrowed money. Zul Arifin's implicit rate n unknown. In situation where the land is less than 25% of the combined fair value, both the lessee and the lessor will1 treat the land and building as a single unit. Required Note Question (i) and (ii) have two separate assumptions and are not related (i) Prepare journal entries for Kekwa textiles for 2016 and 2017, and justify your answer Assume the land could be leased without the building for RM59,000 each year (ii) Assuming the land had a fair value of RM 200,000 on 1 January 2016, prepare journal entries for Kekwa Textiles for 2016 and 2017 (iii) Show the extract of Statement of Profit or Loss for 2016 and 2017 and the Statement of Financial Position as at 31 December 2016 and 2017