Question 2-Leases: Lessee Soaring Pieces Inc. creates aluminum alloy parts for commercial aircraft. In a recent transaction Soaring leased a high precision lathe machine from Rapid Revolving Corp. on January 1, 2019. The following information pertains to the leased asset and the lease agreement: Lease provisions Lease term 5 years Annual payment 40,000 Payment frequency Annual Start date of lease January 1 First payment due Commencement date of lease Guaranteed residual value $ 15,000 17% Interest rate implicit in the lease (not readily determinable by lessee) Lessee's incremental borrowing rate 8% The lathe machine will revert back to the lessor at end of lease term, title does not transfer to lessee at any time, and there is not a bargain purchase option. Both parties report under IFRS. Required: a. Determine the amount the right-of use asset and lease liability are initially measured at from the perspective of the lessee. Show all of your inputs and calculations. b. Prepare the journal entries on January 1, 2019, December 31, 2019, and January 1, 2020 for the lessee