e) An entity entered into a contract to hire a plant on 1 January x2. The rental of RM200,000 per annum is payable at the beginning of the year for five years. The fair value of the asset is RM1.2 million. In year 4, when finalising the financial statements for the year ended 31 December 3, it was discovered that it is a finance lease and not an operating lease. The entity had accounted for the rental payment as an expense. Discuss the accounting treatment and disclosure for each of the following independent events and transactions. Assume that the tax rate is 25 % where applicable. The year ends on 31 December