(ii)?

(a) Space Limited acquired an item of plant and equipment on a finance lease on 1 January 2017. The terms of the agreement were: Deposit: Instalments: 2,000 pa for four years payable in arrears Cash price: 7,710 2,000 (non-refundable) The asset has a useful life of four years with a scrap value of 510 at the end of the four years. The interest rate implicit in the lease is 15%. Required (0 Construct a table which clearly shows the finance charges and the lease liability over the full term of the lease. Marks (i) Prepare extracts from the Statement of Profit or Loss and Statement of Financial Position for the year ending 31 December 2017, using the actuarial method to allocate the finance costs over the term of the lease. 7 Marks