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There is no purchase option for Lychee to buy the delivery trucks when the lease term expires. v Lychee's accounting policy is to depreciate its

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There is no purchase option for Lychee to buy the delivery trucks when the lease term expires. v Lychee's accounting policy is to depreciate its non-current assets on a straight-line basis. Required (work to the nearest dollar): a Discuss any five factors that Lychee should consider when it decides whether to choose Option A or Option B. (15 marks) b If Lychee decides to choose Option B, how should t measure and account for the lease in its books in 2018 in accordance with the relevant financial reporting standard? (10 marks) Prepare journal entries in the books of Lychee in relation to the lease for the year ended 31 December 2018 c (12 marks) d Prepare the financial statements extracts of Lychee for the year ended 31 December 2018 for the relevant items related to the lease. (10 marks)

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