On 1 July 2016, Newcastle Knight Ltd leased a machine from Cowboy Ltd. The fair value of the machine was $400,000 on 1 July 2016. The lease agreement contained the following provisions: Lease term 4 years Annual repayment in advance on 1 July each year $92,000 Residual value at the end of lease term $10,000 Guaranteed residual value at the end of lease term $6,000 Interest rate implicit in lease 9% The expected useful life of the machine is 5 years. Newcastle Knight Ltd intends to return the machine to the lessor at the end of the lease term.-- please show the workings