emaining 6 Question 6 Colorado plc entered into a finance lease for a machine on 1st January 2020. The lease details are as follows Length of lease 6 years Annual payments 12,000 payable in arrears Present value of lease payments 59,008 Deposit paid 1st January 2020 1,052 Interest rate implicit in the lease 6% Useful life of the asset 7 years Requirement a Prepare the relevant Statement of profit or loss extract in respect of the above lease for the year ended 31st December 2020. (2 marks) b. Prepare the Statement of financial position extract as at 31st December 2020 with respect to the lease liability You may round to the nearest whole number. Show your workings. (5 marks) CIFRS 16 Leases allows two exemptions from showing leases on the Statement of financial position. State the two exemptions. (2 marks)