Question: On 1 January 2015, Finley entered into an agreement to lease a boat. The fair value of the boat was Rs. 36,000 and the term of the lease was four years. Annual lease payments of Rs. 10,000 are payable in advance. The interest rate implicit in the lease is 7.5%. Intructions: (a) determine whether this is operating or finance lease. (b) prepare lease amortization schedule (c) prepare journal entries on behalf of lessee for all years including depreciation entries and also the disposing entry (d) also prepare depreciation schedule for all years (e) prepare ledgers for lease liability and accumulated depreciation ( show proper computations)