a) The information below relates to a leasing arrangement between Frankfield Leasing Company and Boswell Manufacturing Company, a lessee. Inception date Lease term (non-cancellable) Annual lease payment due at the beginning of each year beginning January 1, 2020 January 1, 2020 5 years $28,500 Fair value of asset at January 1, 2020 $130,000 Economic life of leased equipment 6 years Residual value of equipment at end of lease $25,270 term, unguaranteed by the lessee Lessor's implicit rate (not known by the 6% lessee) Lessee's incremental borrowing rate 8% The asset will revert to the lessor at the end of the lease term. There is an expected residual value of $25,270 which is unguaranteed by the lessee. The lessee uses the straight-line depreciation method for all equipment. (Round all figures to the nearest $1.) Prepare amortization schedule to show lease liability under the new IFRS 16 lease method. Instructions (i) What is the lease liability for Boswell Manufacturing Company? (2 marks) (ii) Record the lease on Boswell's books at the date of inception. (4 marks) (iii)Record the first year's depreciation on Boswell's books. (3 marks) (iv)Record interest expense and lease liability for Boswell Company for the year ending December 31, 2020. (2 marks) (v) Discuss the nature of this lease to Frankfield Leasing Company. (Explain the rationale for your answer)