Question: Identify the differences between a Finance Lease and an Operating Lease 5 . 2 . hijk Ltd leases an asset as a lessee. The lease

Identify the differences between a Finance Lease and an Operating Lease
5.2. hijk Ltd leases an asset as a lessee. The lease agreement is for 6 years. Lease instalments of R145545
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.
Profit before tax is R600000
Journalise the transactions for the year ended 31 December 2021(Journal narrations are required)

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