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SECTION A Question 1: (5) 5 AB leases a 100 desk phones for use in one of its offices. The contract term states that there will be an annual rental payment of R9 000 for eight years. The lease arrangement begins on 1 July 20x0. As an incentive to AB, no payment is required in the first year. The desk phones are to be classified as a low-value item. Prepare the correct debit or credit entry that would be required in Entity AB's income statement for the year ended 30 June 20x1 in respect of the above transaction. (5 Question 2: The following information relates to asset X: . Fair value less cost to sell: R45 000 Value in use: R48 000 Carrying value: R50 000 Based on the information above, explain with REASONS the follo a) Whether impairment exists? b) What is the recoverable amount