Section C- Long Answer Questions Answer any ONE (1 x 8 marks = 8 marks) 1. On 1 July 2020, Ismail Ltd leased a crane from Pasha Ltd. The crane cost Pasha Ltd OMR 120,307, considered to be its fair value on the same day. The lease agreement contained the following provisions: The lease term is for 3 years, starting on 1 July 2020 The lease is non-cancellable Annual lease payment, payable on 30 June OMR 39,000 each year Estimated useful life of crane 4 years Estimated residual value of crane at the end of OMR 22,000 lease term Residual value guaranteed by Ismail Ltd OMR 16,000 Interest rate implicit in the lease 7% Required: a. Classify the lease (3 marks) b. Prepare a schedule summarising the minimum lease receipts over the term of the lease