Deermont Ltd entered into a contract with Billwill Ltd to lease a specialised printing machine on 1 January 2023. Ownership of the machinery will not be transferred to Deermont Ltd at the end of the lease term. The contract meets the definition of a lease in terms of IFRS 16, Leases. The following terms apply to the contract: Lease term Initial payment Installment payable monthly in arrears Useful life of printer Lessee's incremental borrowing rate on 1 January 2018 Legal fees (incurred by Deermont Ltd) 5 years R600 000 R45 000 8 years 8% per annum R8 000 Based on the information above, at what amount should the lease liability be recognised at inception of the lease contract by Deermont Ltd, according to IFRS 16, Leases? (Please use the lessee's incremental borrowing rate) (Round off to the nearest Rand.) 1. R179 672 2. R2 156 063 3. R2 219 330 4. R339 124