Q3 Leases 12 Points Q3.1 4 Points A souvenir company Customer enters into a contract with Melbourne alrport (Suppler to use a space in the airport to sell its goods for a three-year period. The contract states the amount of space and that the space may be located at any one of several boarding areas within the airport. There are many areas in the airport that would meet the specifications for the space in the contract. The Customer uses its own kiosk to sell its goods and the kiosk can be moved easily. Costs are minimal to the suppiler associated with changing the space for the Customer Required: According to AASE 10 Leases, should the above contract between the Customer and Supplier be treated as a lease contract? Please explain Enter your answer here Q3.2 4 Points The following information is relevant to questions 32 and 3.3. On 1 July 2020, North Ltd leases a machinery from South Lid with the option to purchase the machinery at the end of the lease term. It is reasonably expected that North Ltd will exercise the bargain purchase option. Moreover, North Ltd enjoys the first year of the lease term as a rent-free period. The lease contract also contains the following Information 4 years 3 years Lease term (non-cancellable) Expected useful life of the machinery Expected residual value of the machinery Bargain purchase price at the end of lease term Net initial directly attributable costs Annual lease payment (paid in arrears) Annual maintenance & insurance included in the annual lease payment Interest rate implicit in the lease S50 000 $80 000 SIO 000 S120 000 520 000 12% pa Required: Prepare the lease payment schedule below. Date Lease payment Interest expense Reduction in lease liability Balance of lease liability 1 July 2020 30 June 2021 30 June 2022 30 June 2023 30 June 2024 Flere selecties Select the Q3.3 4 Points List the items and amounts pertaining to the above lease contract that should be included but not necessarily disclosed separately) in extracts from the Income Statement and Balance Sheet of North Ltd (the lessee for the year ended 30 June 2022. Ignore any cash Impact Flere selectie Selectes