On 30 June 2023, Lovett Ltd. leased a machine from Martin Ltd. The finance lease agreement contained the following provisions: Lease term 4 years Annual rental payment, in advance on 30 June each year (starting at 30/06/2022) $39,800 Estimated useful life of asset 6 years Estimated residual value of machine at end of lease term $9,000 Residual value guarantee by lessee $12,000 Interest rate implicit in the lease 9% The lease is cancellable, but only with the permission from the lessor. Included in the annual rental payment is an amount of $1,510 to cover the costs of maintenance and insurance paid for by the lessor. Required: a. Calculate the lease liability and the right-to-use asset. (1 mark) b. Prepare the lease schedules for the lessee. (1 mark) c. Prepare the journal entries of the lessee on 30 June 2023 (3 marks) Page 2 of 3 d. Prepare the journal entries of the lessee on 30 June 2025 (3 marks) e. Present all the assumptions you made to calculate and prepare the journal entries since the inception of this lease. You must support your arguments referring to the paragraphs of IFRS 16. (2 mark