On 1 January 20X1, Heggie leased a machine under a five-year lease. The useful life of the asset to Heggie was four years and there is no residual value. The annual lease payments are $6 million payable in arrears each year on 31 December. The present value of the future lease payments at 1 January 20X1 was $202761.04 million using the interest rate implicit in the lease of approximately 6% per annum. At the end of the lease term legal title remains with the lessor. Heggie incurred $0.4 million of direct costs of setting up the lease. The directors have not leased an asset before and are unsure how to account for it. Required: a) Calculate the right of use asset and its depreciation. 5 points b) What is the beginning liability amount? 5 points c) Calculate the total interest amounts to be paid. 5 points d) What is the amount of the long term and short debt at the end of the first year? 5 points e) Show the accounting entries on January 1 and December 31 of the first year. 10 points. Single line text.