7.5 On 1 January 2005 a manufacturing machine of EUR 330,000 is acquired by way of a finance lease agreement under the following terms:

• Lease term: three years

• Instalments of EUR 72,500 are payable half-yearly in arrears

• Deposit of EUR 30,000 immediately payable.

The amortisation table for this transaction is as follows (amounts in euro):

Instalment Interest Capital Balance Cash price 330,000 Deposit 30,000 – 30,000 300,000 Instalment 1 72,500 35,320 37,180 262,820 Instalment 2 72,500 30,943 41,557 221,263 Subtotal 175,000 66,263 108,737 Instalment 3 72,500 26,050 46,450 174,813 Instalment 4 72,500 20,581 51,919 122,894 Instalment 5 72,500 14,469 58,031 64,863 Instalment 6 72,500 7,637 64,863 –

TOTAL 465,000 135,000 330,000 Present this finance lease in the lessee’s financial statements for 2005.