1. On 1 January 20X7 Melon bought a machine by way of a finance lease. The terms of the contract were as follows: $ Cash price 18,000 Deposit (6,000) 12,000 2,160 Interest (9% for two years) Balance 14,160 The balance is payable in two annual instalments commencing 31 December 20X7. The rate of interest implicit in the contract is approximately 12%. Applying the requirements of IAS 17 Leases what is the finance charge to profit or loss for the year ended 31 December 20X7? (A) $1,080 (B) $1,440 (C) $1,620 (D) $2,160