On January 1, 20X1, Dynamic entered into a two-year lease for a lorry. The contract contains an option to extend the lease for a further year. Dynamic believes that it is reasonably certain to exercise this option. Lorries have a useful economic life of ten years. Lease payments are $10,000 per year for the initial term and $15,000 per year for the option period. All payments are due at the end of the year. To obtain the lease, Dynamic incurs initial direct costs of $3,000. The lessor immediately reimburses $1,000 of these costs. The interest rate within the lease is not readily determinable. Dynamic's incremental rate of borrowing is 5%. Present Value Table Year Discount rate 5% 1230.9520.9070.864 Required Calculate the initial carrying amount of the lease liability and the right-of-use asset. Provide the double entries needed to record these amounts in Dynamic financial records. (25 marks)