Question 2 On January 1, 2021, White Star Heavy Machines company leased a Machine to Little Star Appliances Company. Below is more information: (a) The fair value of the machine was $ 1,007,560. (b) The lease agreement specifics annual rental payment at the end of a year i.e., (December) (c) The lease term is 10 years which is equal to the useful life of the machine. (d) The rental payments are $ 153,078 each December 31 including executory cost of $ 19,200 (tax) which is paid directly to third party. (e) White Star company sets the annual rental to earn a rate of return on its investment of 10% per year. (i.e., interest is payable from first year onwards (from 2021) (f) The lease capitalized amount is $ 1,007,560 (present value of total lease payments). Assume the lease is finance lease. Required (i) Record the entries which were made by both lessee and lessor in time of leasing the asset (January 1, 2021). (5 marks) (ii) Prepare amortization table for the first three years (up to December 31, 2023). (5 marks) (iii) Record the entries which were made by both lessee and lessor for payment of lease rental on 31 December 2021 (5 marks) (iv) Record the depreciation entry for lessee and lessor, using straight line. (v) Record the entry for payment of lease rental on 31 December 2022 by lessee and lessor