The machinery is rented out on the operating lease basis and no finance lease is given. GB Jaya Bhd was approached by an agent of Ajil if GB Jaya would be interested in leasing any of the available machinery. GB Jaya, who had been sourcing for machinery, selected a plant and machinery. The fair value of the selected plant and machinery was RM1,000,000, and they are expected to have an economic life of 10 years. GB Jaya requires the plant and machinery only for 6 years. A non-cancellable lease agreement was entered into between Ajil and GB Jaya for 6 years, commencing on 1 January 2019.