LLUM 125) Orica Ltd acquired an item of equipment and enters into a non-cancellable lease agreement with Smart Equipment Ltd on 1 January 2015. The lease consists of the following: . Date of inception: Duration of lease: Life of leased asset: Lease payments (annual): 1/1/15 4 years 5 years $160,000 (annual) which includes $20,000 for maintenance and insurance costs per annum. . Guaranteed residual value (Added to final payment): $60,000 Interest rate: 10% Required: (a) Determine the present value of minimum lease rental payment. (2 marks) (b) Prepare the journal entries for the Lessee using the Net Method for the following (3 marks) i. ii. Transfer of control Payment of annual payments for 2015 and 2016. (c) How will the lease be shown in the financial statement of lessee at the end of 2016? (2 marks) (d) What exemptions are available under AASB 16 that would allow a lessee not to capitalise lease assets and lease liabilities? (2 marks) (e) Provide an overview of how accounting for leases was changed as result of the release of AASB16 Leases