"Zhang Limited leases a helicopter from Tranter Limited with the following terms: lease term is 10 years; estimated economic life of the leased asset is 25 years; 10 annual rental payments of $900 000 are payable at the end of each year, the $900 000 payment includes service and maintenance costs of $100 000; residual value is $50 000; the guaranteed residual value by the lessee at the end of the lease term is $40 000; interest rate implicit in the lease is 5%. The lease payments are:"

		(10 payments of $800 000) + (guaranteed residual of $40 000).
		(10 payments of $900 000) + (guaranteed residual value of $40 000).
		(10 payments of $900 000) + (residual value of $50 000).
		(10 payments of $800 000) + (unguaranteed residual of $ 10 000).

"Zhang Limited leases a helicopter from Tranter Limited with the following terms: lease term is 10 years; estimated economic life of the leased asset is 25 years; 10 annual rental payments of $900 000 are payable at the end of each year, the $900 000 payment includes service and maintenance costs of $100 000; residual value is $50 000; the guaranteed residual value by the lessee at the end of the lease term is $40 000; interest rate implicit in the lease is 5%. Note: The present value interest factor of an annuity of 10 payments of $1 at 5% = 7.7217; the present value of a lump sum of $1 discounted 10 periods at 5% = 0.6139. The journal entry for the lessee on the day the lease contract is signed is:"

		"Dr Right-of-use helicopter (900 000x7.7217), Cr Lease Liability (900 000x7.7217)"
		"Dr Right-of-use helicopter (800 000x7.7217), Cr Lease Liability (800 000x7.7217)"
		"Dr Right-of-use helicopter (800 000x 7.7217+ 10 000x0.6139), Cr Lease Liability (800 000x 7.7217+ 10 000x0.6139) "
		"Dr Right-of-use helicopter (800 000x7.7217 + 40 000x0.6139), Cr Lease Liability (800 000x7.7217 + 40 000x0.6139)"