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Morrison Ltd (Lessor) and Albanese Ltd (Lessee) enter into a lease agreement for a crane on 30 June 2019. On that date, the crane had

Morrison Ltd (Lessor) and Albanese Ltd (Lessee) enter into a lease agreement for a crane on 30 June 2019. On that date, the crane had a fair value of $83,002. Details of the lease agreement are as follows: Lease term 4 years Annual Rental Payment in arrears starting from 30 June 2020 $23,000 Economic life of the Crane 6 years Estimated Residual value at the end of the lease term $20,000 Residual Value guaranteed by the lessee $12,000 Interest Rate implicit in the lease 7% The annual rental payment includes $3,000 that is reimbursed to the lessor to do the maintenance and insurance for the crane on behalf the lessee. The lessee intends to return the crane to the lessor at the end of the lease term. The relevant discount rates are: Year 30/06/2019 1 30/06/2020 0.9346 30/06/2021 0.8734 30/06/2022 0.8163 30/06/2023 0.7629 Required: 1. Calculate the present value of the lease payments. 2. Prepare the lease payment schedule for the lessee. 3. Prepare the lease receipts schedule for the lessor. 4. Prepare journal entries in the books of the lessor from the inception of the lease until the year ended 30 June 2020 (Narrations are not required). Note: Please round off to the nearest dollar.

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