Loftus Exercise 10.8 On 1 July 2020, Sherlock Ltd leased a processing plant to Holmes Ltd. The plant was purchased by Sherlock Ltd on 1 July 2020 foris fair value of $383,032. The lease agreement contained the following provisions. Lease term 3 years Economie life of plant 5 years Annual rental payment, in arrears (commending 30/6/2021) $123,000 Residual value at end of the lease term 574,000 Residual guaranteed by lessee 549.000 Interest rate implicit in lease 7 The late is cancelable only with the permission of the lesson Holmes Ltd intends to return the processing plant to the lessor at the end of the lewe term. The lease has been classified as a finance case by both the see and the 1. (a) Prepare the lease payment schedule for the lessee. (Round factor values to decimal plan . 5,2752 and final answers to decimal Places, t.9. 8,275) Holmes Ltd (lessee) Lease payments schedule Minimum Lease Interest Liability Liability payment balance expen reduction 1 July 2020 30 June 2021 123000 30 June 2022 123000 Police 10.2000-2021.hn Wiler Sons. Inc. All Rights Reserved. A Division of WISI. ng the son 1. (a) Prepare the lease payment schedule for the lessee. (Round factor values to 4 decimal places, ..,2752 and final answers to decimal placesu. 5.278) Holmes Ltd (lessee) Lease payments schedule Minimum Internet Liability Liability | payments expense reduction Salance 1 July 2020 30 June 2021 123000 30 June 2022 123000 30 June 2023 183000 *Note: The total of this column must equal the initial liability balance, which may require rounding the final interest revenue figure Show Work for this question: Open Show Work