ARC Airline leases an airplane on January 1, 2022. The terms of the leases are to pay a non-refundable deposit of $1,000,000 followed by 20 annual installments of $5,000,000 payable in arrears. The present value of future lease payments, excluding the deposit on January 1, 2022 is $52,970,071. The interest rate implicit in the lease is 7% Round your number to the nearest dollar.
Requirement
a.) What is the interest charge in the statement of profit or loss for the year ended December 31, 2022?
b.) What is the current and non-current liability balances included in the statement of financial position as at December 31, 2022?

Prepare the journal entry to record the (i) the initial recognition of the lease liability, (ii) the recognition of the lease expense for the first year