On 8 October 2018, The Flavours of Italy Unit Trust entered into a non- cancellable lease agreement to finance the acquisition of a motor vehicle (ie. a Ford Transit SWB Van) that will be used exclusively in the business. Details of the finance lease agreement are as follows: Details of the finance lease agreement are . Fair value of van (GST-exclusive) $42,000 Present value of the minimum lease payments (including the present value of the guaranteed residual). $42,000 Amount financed under the lease agreement $42,000 Lease term 5 years Number of monthly lease payments 60 Monthly lease payments (GST-inclusive) due on the 8th day of each month $770 The first lease payment of $770 is made in advance on 8 October 2018. There is no interest on the first lease payment. Thereafter, 59 monthly lease payments are due on the 8th day of each month. The 60th and final lease payment is due on 8th September 2023. Under the lease agreement on 8th September 2023 (being the same date as the final $770 lease payment, the trust is also required to make the guaranteed lease residual payment of $9,000 (GST-inclusive). The trust intends to pay out the guaranteed lease residual in 5 years time and take full legal possession of the van. Total GST-inclusive lease payments (including the guaranteed residual)$55,200 Total GST-exclusive lease payments (including the guaranteed residual)$50,182 Useful/(effective) life of the van (same for accounting and taxation) 8 years Depreciation policy: the trust uses the straight-line method for accounting purposes and the SBE simplified depreciation regime for small business entities for taxation purposes. The estimated residual value of the van at the end of the eighth year $Nil . Note: There are 266 days from 8 October 2018 to 30 June 2019. Mario has provided you with the original finance lease agreement. All of the above information is contained in the lease agreement. Unfortunately, the lease agreement does not stipulate the implicit interest rate. Hence, you will need to calculate the implicit interest rate when preparing your EXCEL lease spreadsheet. Ignore any accrued interest between 8 June to 30 June each year. In other words, the outstanding lease liability at 30 June 2019 is effectively the amount of the outstanding lease liability at 8 June 2019