QUESTION 6 Bacon Ltd enters into a four-year lease agreement with Cheese Ltd on 1 July 2020 for an item of machinery. There is a bargain purchase option that Bacon Ltd will be willing to exercise at the end of the fourth year for $50 000. The machinery is expected to have a useful life of five years. There are to be four annual payments of $150,000, the first being made on inception. Each $150,000 lease payment includes $15 000 representing payments to the lessor for insurance and maintenance of the machinery which are made in advance. Additional information: Implicit interest rate: 11 per cent. Use the PV tables provided here (Word Doc) to calculate your answers. Round your answers to the nearest whole dollar Required (answer all parts of the question): (a) Determine the initial measurement of the lease liability. Include the journal entry. Show all workings. (4 marks) (b) Determine the initial measurement of right-of-use asset cost, Include the journal entry. Show all workings. (1 mark) (c) Complete the following table for 1 July 2020 and 30 June 2021. Show all workings TIP: You can copy and paste the table template below to assist you in answering this question. Use keyboard shortcuts to copy the table and paste it into the answer field. Once you have pasted the table click into a cell to edit it. You can use the arrow keys to navigate between cells. To copy on a PC use CTRL1 on a Mac use Command To paste: on a PC use CTRL+YI on a Mac use Commandy Date Beginning Lease Interest Principal Closing Balance Payment Expense Repayment Balance (3 marks) (d) Provide the required accounting journal entries for 1 July 2020. (2 marks)