On 1 July 2008, Huge & Co Ltd entered into a finance lease to acquire a machine. The cash price of the machine would have been EUR 264,000. The lease agreement specified that the company would make four lease payments, each of EUR 90,606, on 30 June 2009, 2010, 2011 and 2012. The interest rate implicit in the lease was 14 per cent per annum. Huge & Co Ltd prepares its financial statements on 30 June each year. 

Determine the finance charge which should be shown in the company’s income statement for each of the years to 30 June 2009, 2010, 2011 and 2012. Also show how the liability to the lessor should be presented in the balance sheet of Huge & Co Ltd as at 30 June 2009.