Question: 5.1. Identify 5 differences between a Finance Lease and an Operating Lease? (10 marks) 5.2. MNO Ltd leases an asset as a lessee. The lease

5.1. Identify 5 differences between a Finance Lease and an Operating

5.1. Identify 5 differences between a Finance Lease and an Operating Lease? (10 marks) 5.2. MNO Ltd leases an asset as a lessee. The lease agreement is for 6 years. Lease instalments of R145 545 made at the beginning of the period and interest rate is 9%. The commencement of the lease is 1 April 2021. Asset is depreciated over 4 years. The tax rate is 28%. Lease payments are allowed as a deduction when paid. (15 Profit before tax is R600 000 marks) Journalise the transactions for the year ended 31 December 2021 (Journal narrations are required)

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