QUESTION 1 10 points Save Answer Bank Muslim has entered into an Ijara contract with Barakah Construction to lease equipment for a period of 5 years. The bank purchased specialized equipment from a local manufacturer on 01 January 2017 for $1,100,000 and incurred a transportation cost of $100,000. The Bank also incurred a legal fee of $50,000 relating to the Ijara contract, which the bank considered to be material. Both parties have agreed that the installments are paid every quarter. The rental payment was agreed at $40,000 per month. The residual value of the equipment after 5 years is expected to be $200,000 based on the estimate of a certified valuer. In 2018 and 2020, Barakah Construction incurred repair costs due to mechanical default not due to the normal usage of the asset amounting to $50,000 and $40,000 respectively. Every year, Barakah Construction incurred routine maintenance costs due to wear and tear amounting to $20,000 per year on average. Required: (a) Prepare a profit statement to recognize the above ljara contract in the books of Bank Muslim for the five-year period based on Ijara Muntahia Bitamleek (IMB) through the Equivalent Value method as prescribed by AAOIFI FAS 8. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt Ev A v HE X2 X2 - + ABE V X EX OQuestion No. 1: Given the following information for Happy manufacturing company for the year ended December 31,2018: Actual results Flexible budget Static budget Units sold 10,000 10.000 12.000 Revenues $ 1,250.000 $1,200.000 5 1.440.000 Variable costs: Direct materials 621.600 600,000 720.000 Direct manufacturing labor 198,000 160.000 192.000 Variable manufacturing overhead 130.500 120.000 141.000 Fixed manufacturing costs 285,000 276.000 276.000 Required: 1. Prepare a level 0 analysis of 2018 performance. 2. Prepare a level 1 analysis of 2018 performance. 3. Prepare a level 2 analysis of 2018 performance. Actual