Waterway Dairy Ltd$.$ leases its milk cooling equipment from Concord Finance Corporation. Both companies use IFRS. The lease has the following terms: $1.$ The lease is dated May $30,2023,$ with a lease term of eight years. It is non$-$cancellable and requires equal rental payments of $$30,400$ due nach May $30,$ beginning in $2023.2.$ The equipment has a fair value and cost at the inception of the lease of $$214,158,$ an estimated economic life of $10$ years, and a residual value $($which is guaranteed by Waterway Dairy$)$ of $$22,400.3.$ The lease contains no renewal options and the equipment reverts to Concord Finance on termination of the lease. $4.$ Waterway Dairy's incremental borrowing rate is $6\%$ per year; the implicit rate is also $6\%.5.$ Waterway Dairy uses straight$-$line depreciation for similar equipment that it owns. $6$ Collectibility of the payments is reasonably predictable, and there are no important uncertainties about costs that have not yet been incurred by the lessor. a$)$Using $(1)$ tables, $(2)$ a financial calculator, or $(3)$ Excel functions, calculate the PV of the lease payments and guaranteed residual value under the leave. $($Round factor values to $5$ decimal places, eg$.1\mathrm{.}25124$ and final answer to O decimal places, eg$.5,275)$ b$)$ Prepare the journal entries for the lessee arid lessor at May $30,2023,$ and at December $31,2023,$ which is the lessee's and lessor's year end. $($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. Round factor values to $5$ decimal places, eg$.1\mathrm{.}25124$ and final answers to O decimal places, eg$.5,275)$ c$)$ Prepare the journal entries at May $30,2024,$ for the lessee and lessor. Assume reversing entries are not used. $($List all debit entries before credit entries. Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e$.$g$.5,275)$ d$)$ What amount would have been capitalized by the lessee on inception of the lease if: $($Round answers to O decimal places, eg $5,275)1.$ The residual value of $$22,400$ had been guaranteed by a third party, not the lessee? $2.$ The residual value of $$22,400$ had not been guaranteed at all? e$)$ On the lessor's books, what amount would be recorded as the net investment at the inception of the lease, assurning: $($Round answers to O decimal places, eg$.5,275)1.$ Concord Finance had incurred $$1,200$ of direct costs in processing the lease? $2.$ The residual value of $$22,400$ had been guaranteed by a third party? $3.$ The residual value of $$22,400$ had not been guaranteed at all? f$)$ Assume that the milk cooling equipment's useful life is $20$ years, How large would the residual value have to be at the end of eight years in order for the lessee to qualify for the operating method assuming ASPE applies? Assume that the residual value would be guaranteed by a third party. $($Hint: The lessee's annual payments will be appropriately reduced as the residual value increases.$)($Round factor values to $5$ decimal places, eg$.1\mathrm{.}25124$ and final answer to O decimal places, eg $5,275.)$ The residual value would have had to be greater than $$\_\_\_\_\_\_\_\_\_$