QUESTION $2$ Haze Ltd has requested your help in preparing their financial statements in accordance with NZ IFRS $16$ Leases. You are provided with the following lease details: Commencement date: $1$ April $2019$ Lease term: $7$ years Upfront payment due on the commencement date: $$40000$ Fixed payments per annum received at year$-$end: $$120000$ IDC incurred by the lessee: $ $0$ The interest rate implicit in the lease: $8\%$ Economic life of the asset: $10$ years The depreciation method used: Straight line The relevant present value discount factors are: Present value of $$1$ in n periods n $=7$: $0\mathrm{.}5835$ Present value of an annuity i $=8\%$ : $5\mathrm{.}2064$ Haze Ltd wanted the financial statements to be completed promptly, so the table below was prepared for your use. Table for the Lesse$|$ Lease Payments$|$Interest Expense$8\%|$Lease Liability Reduction $|$Lease Liability Balance Commencement of lease on $1$ April $2019624768|31/3/2020|120000|49981|70019|554749|31/3/2021|120000|44380|75620|479129|31/3/2022|120000|38330|81670|397459|31/3/2023|120000|31797|88203|309256|31/3/2024|120000|24740|95260|213996|31/3/2025|120000|17120|102880|111116|31/3/2026|120000|8884|111116|-$ $$840000|215232|$ $$624768|$ Required: $($i$)$ Prepare the financial statements for Haze Ltd to reflect the effects of the lease for the financial periods ending $31$ March $2020,2021,2025,$ and $2026($ii$)$ Prepare the final journal entry to derecognise the ROU asset. $($iii$)$ Haze Ltd was interested in seeing the effects on their financial statements if the lease had met one of the two exemptions to the single lease accounting model; they understood they did not meet either of the two exemptions. Prepare the financial statements for Haze Ltd$,$ assuming they did meet one of the two exceptions, for the financial periods ending $31$ March $2020,2021,2025,$ and $2026.$