Question 3 On 1 July 2020, Wiremu Ltd leased a retail premises to Netana Ltd. On 1 July 2020, Wiremu Ltd purchased the premises for its fair value. The lease agreement contained the following provisions: 4 years Lease term 3 years Useful life of plant (scrap value $25,000) Annual payment, in arrears (commencing 30/6/2021) $162,500 Residual value at end of lease term $90,000 Interest rate implicit in lease 5% Wiremu Ltd agrees to maintain and service the retail premises for an annual fee of $12,500, which is payable by Netana Ltd on 30 June each year. The $12,500 is included in the annual payment of $162,500. Of the $90,000 residual value at the end of the lease term, Netana Ltd. guarantees $50,000 Wiremu Ltd intends to return the retail premises to Netana Ltd at the end of the lease term. Wiremu Ltd has classified the lease as a finance lease. Required: In accordance with AASB16 Leases: (a) Calculate the Net Investment in the Lease from the perspective of the lessor Wiremu Ltd. (3 marks) Provide your answer here (b) Prepare the Lease receipts schedule for the lessor Wiremu Ltd (show all workings using a table) (5 marks) Provide your answer here (c) Prepare the journal entries in the books of the lessor Wiremu Ltd for the year ended 30 June 2021. (4 marks) Provide your answer here (d) Describe the circumstances in which a lessee does not have to recognise the lease agreement as finance lease. (2 marks) Provide your answer here (Total=14 marks)