Question. Accounting by lessee

Indiana Ltd decided to lease from ones lid a car that had a fair value at 30 June 2019 of $38 960. The lease agreement contained the following provisions

Casa Armui rental payment meaning 1 Gur d icial expected fair val at end of lease tem

a years $1 1900

The expected useful life of the vehicle s 5 years. At the end of the 3 year lease term, the car was returned to Jones Ltd, which sold it for 510 000. The annual rental payments include an amount of $1200 to cover the cost of maintenance and insurance arranged and paid for by Jones Itd. Interest rate is 5% pa

Required

(a) prepare the lease payments schedule for Indiana It (show all workings 120 marks)