The following information is relevant to questions 3.2, 3.3 and 3.4. On 1 July 2020, North Ltd leases a machinery from South Ltd with the option to purchase the machinery at the end of the lease term. It is reasonably expected that North Ltd will exercise the bargain purchase option. Moreover, North Ltd enjoys the first year of the lease term as a rent- free period. The lease contract also contains the following information: Lease term (non-cancellable) Expected useful life of the machinery Expected residual value of the machinery 4 years 8 years $50 000 Bargain purchase price at the end of lease term Net initial directly attributable costs Annual lease payment (paid in arrears) $80 000 $10.000 $120 000 Annual maintenance & insurance included in the annual lease $20 000 payment Interest rate implicit in the lease 12% p.a. Required: Calculate the lease liability and right-of-use asset that North Ltd should recognise on 1 July 2020 in relation to the above lease contract in accordance with AASB 16. Show your working. Prepare the lease payment schedule below. Interest Date Lease payment expense Reduction in lease liability Balance of lease liability 1 July 2020 30 June 2021 30 June 2022 30 June 2023 30 June 2024 Please select file(s) Select file(s) Q3.4 4 Points List the items and amounts pertaining to the above lease contract that should be included (but not necessarily disclosed separately) in extracts from the Income Statement and Balance Sheet of North Ltd (the lessee) for the year ended 30 June 2022. Ignore any cash impact