On 31 December 2020, Echo leased three different machines, X, Y and Z to a bank in three different leases. Each lease is for 3 years and they are all non-cancellable leases.

$500,000 is receivable annually in advance for each machine on 1 January 2021, 2022 and 2023. Echo uses its interest rate implicit in the lease of 10% to determine interest income for all three leases.

Under the lease contract of machine Z, Echo is also required to receive an initial lease payment of $250,000 on 31 December 2020.

The fair values of each machine at 31 December 2020 and the residual value guarantee by the lessee for each machine at 31 December 2023 are as follows:

Lease of machine	X	Y	Z
Fair value at 31 December 2020	$1,686,000	$1,800,000	$2,480,000
Residual value guarantee at 31 December 2023	$200,000	$180,000	$320,000

All the machines are to be returned to Echo at the end of the lease period. The useful life of the machine Y is 3 years. The useful life of the other machines is 6 years.

Required: Which of the lease of machines (X, Y and Z) should be recognized in the statement of financial position of Echo at 31 December 2020 as lease receivable, according to HKFRS 16 'Leases' and using the below provided present value factors?

PVF1,10%	PVF2,10%	PVF3,10%
0.910	0.826	0.750

	A.	All of them
	B.	Machine X and Y
	C.	Machine X and Z
	D.	Machine Y and Z