Question 3 (10 marks) COE Limited is a lessee and has entered into a non-cancellable lease agreement for an equipment on 1 January 2020. The following data is relevant: 1. The lease term is 5 years. Lease payments is $770,000 per annum, payable on 1 January of each year, with the first payment on 1 January 2020. 2. The equipment has a useful life of 6 years with no residual value. 3. COE Limited depreciates similar equipment on a straight-line basis. 4. The interest rate implicit in the lease is 7% per annum. Required (Answers round to the nearest dollar): a. Calculate the present value of the lease payments on 1 January 2020. Note: You may use the discount rate table at the end. (2 marks) b. Prepare the journal entries related to the lease agreement in 2020. (8 marks)