Lessee Ltd has requested your help in preparing their financial statements as they are unsure of the new requirements of NZ IFRS 16 Leases for lessees. They provided you with the following lease information: Commencement date Upfront payment due on the commencement date Lease term Fixed payments per annum at year end IDC incurred by the lessee Residual value guarantee (RVG) Lessee expectation of the FV of the asset at the end of lease Lessee's incremental borrowing rate Economic life of asset Depreciation method used by the lessee The relevant present value discount factors are: Present value of $1 in n periods n = 3 i = 6% Present value of an annuity n = 3 i = 6% 1 April 2019 $90 000 3 years $350 000 $ 12 698 $700 000 $580 000 6% 5 years Straight line 0.8396 2.6730 QUESTION 2 Lessee continued: Required: (i) Lessee Ltd has requested you to prepare financial statements, over the lease period, to reflect the effects of the lease. Lessee Ltd classifies interest expense paid as a cash flow from financing activities. (ii) Prepare all the journal entries that would have been prepared on 31/3/2022. (iii) Explain the number of years over which the Lessee is required to depreciate the ROU asset