Question One (17 marks) Air Fly Limited leases an aircraft from Aviation Industries Limited that costs Aviation Industries $81 000 to manufacture. The lease agreement started on 1 July 2021 for 10 years duration. The life of the leased asset is estimated to be 10 years with an unguaranteed residual value of $18 000. Lease payments is $10 000 on 30 June each year for the next 10 years. The rate of interest implicit in the lease is 8%. Required: a. Calculate the fair value of the leased asset at the date of lease inception. Show complete calculations. (4 marks) b. Prepare the journal entry on 30 June 2022 in the books of Aviation Industries Ltd. (6 marks) c. Provide a possible explanation as to why, after adopting the new lease accounting standard (AASB 16) which required economic entities to capitalise leases, reporting entities might be more likely to buy more assets, and lease fewer assets. (7 marks)