orpeal lease amortization schedule (d) Prepare all of PP Berhad's journal entries for the first year of the lease , Daly Berhad is a leasing company that enters into a five year non-cancelable lese for quipment with Krause Berhad on 1 January 2015. The equipment has an estimated life of six years and a fair value of RM1,800,000 at the inception of the lease. In addition, the leased equipment is of a specialized nature such that only Krause Berhad can use the equipment without major modifications being made. The lease contains the following provisions: . Rental payments of RM200,000, payable at the beginning of each six-month period. throughout the lease period . It is expected that Daly Berhad will realize RM100,000 from selling the asset at the expiration of the lease. However, the actual residual value is expected to be RM60,000 The residual value is not guaranteed by Krause Berhad. Krause's incremental borrowing rate is 8%. Krause uses the straight-line method to depreciate its assets. Required: (a) Discuss the nature of this lease in relation to Krause Berhad. (b) Prepare the related journal entries for the year 2015 in the books of Krause Berhad (include an amortization schedule through 1 January 2016 and round off to the nearest Ringgit)