Question 3 Alpine Ltd signed a non-cancellable lease with Mt Buller Ltd for a Cargo Plane (single - engine) on 1^(st ) July 2024. The lease terms states, Alpine returns the plane to Mt Buller Ltd at the end of the lease. The following information is available:

Lease term = 20 years No residual payment required = Scrapped Fair value of Cargo Plane (single -engine) at the start of the lease = $2,428,400 Lease payment (on the inception of the lease -1st July 2024) = $300,000 Lease payment (on 30th June each year- starting first paymnet on 30th June 2025) = $250,000

Required: a) Determine the interest rate implicit in the lease. b) Provide, including the narration, the journal entries as at 1^(st ) July 2024 in the books of Alpine Ltd and Mt Buller Ltd. c) Provide, including the narration, the journal entries for the final year of the lease (in 20 years) in the books of Alpine Ltd and Mt Buller Ltd.