A machine was leased by Irie Ltd on 1 January 2016 via a four year lease. The machine's fair value at the inception of the lease was $130,000. Irie Ltd. is responsible for its upkeep and lease payments of $40,000 are payable on 31 December each year. The interest rate implicit in the lease is 10% and the present value of minimum lease payment is $126,760. Required: [A] Explain the type of lease Irie Ltd has. (2 marks) [B] Show in the books of Irie Ltd: (i) the journal entries at the inception of the lease, i.e. January 1,2016 ; (5 marks) (ii) the journal entries at 31 December 2016 ; (iii) state the current liability and the non-current liability as at December 31, 2016. (1 marls)