c) On 1 April 2013, Fino plc increased the operating capacity of its plant. Due to a lack of liquid funds it was unable to buy the required plant which had a cost of $350,000. On the recommendation of the finance director, Fino plc entered into an agreement to lease the plant from the manufacturer. The lease required four annual payments in advance of $100,000 each commencing on 1 April 2013. The plant would have a useful life of four years and would be scrapped at the end of this period. Required Prepare extracts of Fino plc's income statement and statement of financial position (showing current and non-curent liabilities separately) for the year ended 31 March 2015 in respect of the lease agreement assuming (i)It is an operating lease PTO Page 3 of 8 (ii) is a finance lease (using the actuarial method with an implicit interest rate of 10% per annum) 14 marks