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 5 years Initial payment R600 000 Installment payable monthly in arrears R45 000 Useful life of printer 8 years Lessee's incremental borrowing rate on 1 January 2018 8% per annum Legal fees (incurred by Deermont Ltd) R8 000 Based on the information above, at what amount should be added to the lease liability to recognise the right-of-use asset, at the inception of the lease contract by Deermont Ltd, according to IFRS 16, Leases? (Round off to the nearest Rand.) 1. R608 000 2. R8 000 3. R600 000 4. R0