NAME:.. Q1-(25 Marks)- You are auditing the December 31,2019 financial statements of Al-Hid Manufacturing Company During your inspection of the company garage, you discovered that a used automobile not listed in the equipment subsidiary ledger is parked there. You ask the plant manager about the vehicle, and he tells you that the vehicle is not listed because the company was only leasing it and elected to use the short-term lease accounting option for lease. The lease agreement was entered into on January 1, 2019, with Al-Rifa Company. You decide to review the lease agreement to make sure that the lease should be afforded short-term lease treatment, and you discovered the following lease terms: 1. Non-cancelable term of 4 years. 2. Rent of BHD 3,240 is paid at the end of each year. The present value at 8% per year is BHD 10,731. 3. Estimated residual value after 4 years is BHD 1,100. (The present value at 8% per year is BHD 809.) Al-Hid guarantees the residual value of BHD1,100. 4. Estimated economic life of the automobile is 5 years. 5. Al-Hid' Co. incremental borrowing rate is 8% per year. Required: You are a senior auditor writing a memo to your supervisor, the audit partner in charge of this audit, to discuss the above situation. Be sure to include: (a) why you inspected the lease agreement, (b) what you determined about the lease, and (c) how you advised your client to account for this lease. Explain every journal entry that you believe is necessary to record this lease properly on the client's books. (It is also necessary to include the fact that you communicated this information to your client