Q3 Leases 11 Points Q3.1 4 Points On 1 July 2021 Darwin Croc Tour Operators enters a 5-year contract with King Krule Ltd for the use of a boat which has been heavily modified for safety reasons to allow crocodile feeding tours in the murky croc infested waters of Darwin. The boat remains at the Croc Tour Operators port after tours each day and can only be substituted for repairs (e.g., damage caused by crocodiles). The Croc Tour Operators has also entered a 6-month contract to use a radar device which alerts the tour guides when crocs are within 100metres of the boat. The device can only be purchased in Florida USA and is valued at $4000. Required: Advise the CFO of Darwin Croc Tour Operators on how the contracts for the use of boat and radar device should be accounted for in accordance with AASB 116 leases. Q3.2 3 Points The following information is relevant to questions 3.2 and 3.3. Darwin Croc Tour Operators leased a bus from Electrified Ltd on 1 July 2021 to bring tourists from the hotels to the port where the tours begin. The lease is non-cancellable, and Croc Tour Operators intends to return the bus after the lease period. The lease agreement contains the following information: . . . . . Lease term: 4 years Expected useful life of Bus: 5 years Annual lease payment in arrears: $11,000 Interest rate implicit in Lease: 6% Guaranteed residual value: $60,000 Expected fair value of Bus at the end of lease term: $40,000 Maintenance and insurance expenses included in the lease payment: 1,000 . Required: Prepare the lease payment schedule below. Lease Payment Interest expense Liability reduction Balance Date 1/7/2021 30/6/2022 30/6/2023 30/6/2024 30/6/2025 Q3.3 4 Points Prepare the journal entries related to the lease contract for the year ended 30 June 2025 for Croc Tour Operators. Please select file(s) Select file(s)