Question 5 On 1 January 2021, Tioman Bhd leased a machine to Redang Bhd for a five-year period. Lease payments are RM50,000 per annum, to be paid on 1 January each year, starting from 1 January 2021. The fair value of the machinery at inception was RM240,000 with an estimated useful life of 6 years. The machine will be transferred to Redang Bhd at the end of the lease period. Cost of capital is 5%. Required: (a) Compute present value of the lease payment for the machine at inception of the lease. (8 marks) (b) Prepare journal entries for Redang Bhd in the first year of the leasing. Note: Interest is to be computed based on based on Actuarial Method (12 marks)