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In: AccountingOn 1 July 2021 Fairval Ltd (the lessee) contracts a leaseequipment for five years at...On 1 July 2021 Fairval Ltd (the lessee) contracts a leaseequipment for five years at an annual rental of $20,000, with thefirst payment payable immediately and subsequent annual paymentsdue on 30 June. The equipment could have been purchased from thesupplier for $80,747 on 1 July 2021 if leasing was not choseninstead. The rate of interest implicit in the lease is 12% and theend of the reporting period is 30 June. Assume the equipment isreturned to the lessor at the end of the lease, when the residualvalue of the equipment is nil.1?Prepare the general journal entries for the lessee for theremaining term of the lease (not covered by part (1) of thisquestion) up until 30 June 2023.2?Based on the case, explain the motivation for the standardsetter to release the new lease standard (AASB 16).