Question 1 -15 Marks On 1 July 2020, OZ Ltd leased a beer-making machine from NZ Ltd. NZ Ltd had manufactured the machine at a cost of $98,000. The fair value of the machine was $150,434 on that day. The lease agreement contained the following provisions: Lease term 4 years Annual rental payment, in advance (initial payment $45,000 on 1 July 2020; after then on 30 June each year) Residual value at end of the lease term Residual guaranteed by lessee $10,000 $5,000 Interest rate implicit in lease 8% The lease is cancellable only with the permission of the lessor. The expected useful life of the machine is 5 years. OZ Ltd intends to return the machine to the lessor at the end of the lease term. Included in the annual rental payment of $45,000 is an amount of $5,000 to cover the costs of maintenance and insurance paid for by the lessor. Note: If necessary, you may use the following present value factors: Present value of $1 (3 years, 8%) = 0.7938 Present value of $1 (4 years, 8%) = 0.7350 Present value of an annuity of $1 (3 years, 8%) = 2.5771 Present value of an annuity of $1 (4 years, 8%) = 3.3121 REQUIRED a. Provide journal entries for the year ending 30 June 2021 as shown in the books of OZ Ltd (the lessee) in accordance with AASB 16 Leases. Exclude journal narrations. Round to the nearest dollar amount. (8 marks) b. Provide journal entries for the year ending 30 June 2021 as shown in the books of NZ Ltd (the lessor) in accordance with AASB 16 Leases. Exclude journal narrations. Round to the nearest dollar amount. (7 marks)