Glassmere Ltd (which applies IAS17) prepares accounts to 31 December each year. On 1 January 2014, the company acquired an asset by means of a finance lease. Details of the lease agreement are as follows:

Cash price of leased asset 27,500

Lease term 5 years

Payments due annually in advance 6,595 each

Useful life of asset 7 years

Residual value 3,000

Rate of interest implicit in lease 10% per annum

Glassmere Ltd will obtain legal ownership of the asset at the end of the lease term. The company calculates depreciation on the straight-line basis.

Assuming that the actuarial method is used to allocate the finance charge over the lease term, calculate the finance charge and depreciation charge which should be shown in the company's financial statements for each of the years to 31 December 2014, 2015, 2016, 2017 and 2018.

Also calculate the liability to the lessor at the end of each of these years and show how this liability should be split between current liabilities and non-current liabilities.