On 1 December 2010, Eby plc entered into finance lease requiring the payment of five annual payments of 785.000 payable in advance on 1 Dec. 2010, 2011, 2012, 2013 and 2014. The fair value of the leased asset on 1 December 2010 was 3.500.000 The rate of interest implicit in the lease is 15.65% a year. The financial statements (FS) for the year ended 30 November (accounting period is 1 December until 30 November). Calculate the finance charge which should be recognised as an expense in the FS for the years 2010 and 2011 using the (a) actuarial method and (b) sum of the years digits. Also calculate the liability to the lessor for the accounting periods 2010 and 2011 and show how this liability should be split between current and noncurrent liabilities. (8 p.)