On 1 January 2019 Kenmare Printed Ltd. entered into a lease agreement whereby a set of printing machines constituting a new production line were leased from a finance company for a period of 4 years. The only accounting entry made to date in Kenmare Printing Ltds books has been to Dr Cost of Sales and Cr Bank with the payment of the initial deposit. The machines would have cost 537,900 to purchase on 1 January 2019 and are expected to have a value of 210,000 at the end of the lease term. Under the terms of the lease Kenmare Printers Ltd was required to pay a deposit of 120,000 on 1 January 2019 and 3 annual payments of 90,000 on 1 January 2020, 1 January 2021 and 1 January 2022. This lease is non-cancellable. You have been informed that the interest rate implicit in the lease is 5%. You are given the following present value factors: Value of 1 in: 5% 1 year 0.952 2 years 0.907 3 years 0.864 4 years 5 years 0.823 0.784 Required: a) Prepare all of the relevant journal entries to account for this lease and show how this lease would be presented the statement of profit and loss, statement of financial position and the notes to the financial statements of Kenmare Printing Ltd for the year ended 31 December 2019 in accordance with IFRS 16 Leases. 20 marks b) Explain and justify whether this lease would be treated as a finance lease or operating lease under FRS 102. 4 marks c) On the assumption that equal benefit will be derived from the machines over the four years of the lease, show how this lease would be presented in the statement of profit and loss, statement of financial position and the notes to the financial statements of Kenmare Printing Ltd for the year ended 31 December 2019 in financial statements prepared under FRS 102. 6 marks d) Using the workings you have prepared in b) and c) above, analyse the relative merits of the accounting treatment of leases under IFRS 16 Leases and FRS 102.