On 1 July 2019, La Ltd leased a plastic-moulding machine from Trobe Ltd. The machine cost Trobe Ltd $130000 to manufacture and had a fair value of $154109 on 1 July 2019 The lease agreement contained the following provisions. Lease term 4 years An initial payment is paid in advance on 1 July 2019 $40,000 Annual payment of $40,000 to be paid on 30 June 2020, 30 June 2021 and 30 June 2022 Residual value at the end of the lease term $15,000 Residual guaranteed by lessee Nil The lease is non-cancellable The economic useful life of the machine is: 6 years Interest rate implicit in lease 8% Required: a) Calculate the present value of lease liability amount as at 1 July 2019. b) Prepare the journal entries in relation to the lease for the year ending 30 Jun 2020