On 1 April 2022, Mash Ltd enters into a five-year lease of a motor lorry. The company is required to make a lease payment of 250,000 on 1 April 2022 and five further lease payments of 212,500 each on 31 March 2023 to 2027. The company also incurs initial direct costs of 4,700. Legal title to the lorry will be transferred to Mash Ltd at the end of the lease term. The rate of interest implicit in the lease is 10% per annum. Mash Ltd prepares accounts to 31 March. Required: (1) Explain (with calculations) how this lease should be accounted for in the financial statements of Mash Ltd for each of the five years to 31 March 2027. (12 marks) (2) How should the lessor account for this lease? Assume that the lorry has a fair value at inception of 765,000 and that the lessor incurs initial direct costs of 4,350