QUESTION 2 t On 1 January 2018, a computer software service firm, ITMAX Bhd, signs a non-cancellable lease agreement to lease a computer system for four (4) years to REZTEX Bhd. Annual lease payments of RM35,000 are to be made at the end of each lease year starting 31 December 2018. The implicit rate which is known by both parties is 10% and the incremental borrowing rate for REZTEX Bhd is 9%. The cost and the fair value of the asset at the inception date is RM200,000. The straight- line method is used to depreciate the asset and the useful life of the assets is 8 years. REZTEX Bhd guarantees a residual value of RM12,000 at the end of the lease term, which equals the expected residual value of the asset. REQUIRED: < (Round your answer to two decimal points) < + (a) (b) + (c) W Determine the type of lease to ITMAX Bhd. Justify your answer as per MFRS 16 Leases. < Determine the present value of lease payments for REZTEX Bhd and prepare the related journal entries on 1 January 2018. < Prepare the journal entries for REZTEX Bhd to record leasing activities during the first year of the lease term (including the amortization schedule for the first two years of the lease term).