1. Entity A entered into a sale and repurchase agreement for its head office on 1 January 2020, selling the office to a Bank B for $96,540,000.

   On the same date, the head office had a fair value of $120,880,000.

   Entity A will continue to use the head office for the next 2 years and has the option to buy back the property for $112,604,256, based on an effective interest rate of 8% per year over the next 2 years.

   Property prices are expected to increase over the next 2 years.

   REQUIRED:

   Measure the net amount to be shown in the Statement of Profit or Loss for the year ended 31 December 2020.

   	1.	$16,064,256 Expense
   	2.	$7,723,200 Expense
   	3.	None of them.
   	4.	$23,340,000 Expense
   	5.	$0