Thanks for the time :)

Could you give me more specific explanation to 1. discuss the nature of this lease to Russell Corporation, the lessee.

2.Discuss the nature of this lease to Hebert Corporation, the lessor.

E20-3 (Type of Lease, Lessee Entries with Purchase Option) The following facts are for a non-cancellable lease agreement between Hebert Corporation and Russell Corporation, a lessee: Inception date July 1, 2017 Annual lease payment due at the beginning of each year, starting July 1, 2017 $20,066.26 Purchase option price at end of lease term reasonably certain to be exercised by Russell $4,500.00 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $60,000.00 Fair value of asset at July 1, 2017 $88,000.00 Lessor's implicit rate 9% Lessee's incremental borrowing rate 9% The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties about costs that have not yet been incurred by the lessor. The lessee assumes responsibility for all executory costs. Both Russell and Hebert use IFRS 16