Take quiz Question 1 20 pts On 1 July 2023, Beethoven Lid leases a set of musical instruments from Wolfgang Lid for 5 years (i.e. until 30 June 2028). The musical instrument has fair value of $231,218.00. The lease agreement can be cancelled, but a significant penalty will be incurred by Beethoven Lid. The total lease payments required an upfront payment of $50,000 on 1 July 2023, followed by another four (4) equal payments of $50,000 on 30 June each year up to 30 June 2027. The interest rate implicit in the lease is 5%. Total residual value at end of period is $5,000 but there is NO guaranteed residual value. The present value of an annuity of $1 at 5% for 4 years is 3.546. The present value of $1 at 5% at year 5 is 0.7835. Required: a. Show the lease payment schedule for the first (2) two years, i.e. from 1 July 2023 until 30 June 2025. (5 marks) b. Prepare the journal entries for Beethoven Lid (the lessee) to record the initial recognition of lease related assets and liabilities with the up-front payment and interest expense and depreciation under AASB 16/IFRS 16 for financial year ending 30 June 2024. (9 marks) c. Prepare the journal entries for Wolfgang Ltd (the lessor) to record the initial recognition of lease related assets and liabilities with the up-front receipt and interest revenue under AASB 16/IFRS 16 for financial year ending 30 June 2024. Assume Wolfgang Lid is a financier lessor. (6 marks) 12pt V Paragraph B I U Av V T 2 V