On 1 July 2020, Sherlock Ltd leased a processing plant to Holmes Ltd. The plant was purchased by Sherlock Ltd on 1 July 2020 for its fair value of $504,481. The lease agreement contained the following provisions.

oftus Exercise 10.8 1 1 July 2020, Sherlock Led leased a processing plant to Holmes Ltd. The plant was purchased by Sherlock Ltd on 1 July )20 for its fair value of $504,481. The lease agreement contained the following provisions. ease term 3 years conomic life of plant 5 years nnual rental payment, in arrears (commencing 30/6/2021) $162,000 esidual value at end of the lease term $97,000 esidual guaranteed by lessee $65,000 terest rate implicit in lease 7% he lease is cancellable only with the permission of the lessor. Imes Ltd intends to return the processing plant to the lessor at the end of the lease term. The lease has been classified a finance lease by both the lessee and the lessor. 1. (a) pare the lease payment schedule for the lessee. (Round factor values to 4 decimal places, e.g. 5,2752 and final swers to 0 decimal places, e.g. 5,275.) Holmes Ltd (lessee)