On 1 Jamuary 2015, Plum entered into a tive year lease of machinery. The machinery has a useful life of six years. The annual lease payments are $3,000 per annum, with the first payment made on 1 January 2015. To obtain the lease Flum incurs initial direct costs of $1,000 in relation to the arrangement of the lease but the lessor agrees to reimburse Pear $500 towards the costs of the lease. The rate implicit in the lease is 5%. The present value of the minimum lease payments is $22,730. Require Demonstrate how the lease will be accounted in the financial statements over the five year period