On 1 January 2013, a company which prepares financial statements to 31 December each year acquires a machine on a finance lease. The fair value of the machine on 1 January 2013 is 50,000 and the company is required to make three lease payments of 19,753 each. These payments fall due on 31 December 2013, 2014 and 2015. The rate of interest implicit in the lease is 9%per annum. Assuming that the total finance charge is allocated to accounting periods using the actuarial method, calculate finance charge and depreciation expense in lessee's accounts for the year ended 31 Dec 2014. O Finance charge - 3,127 and Depreciation expense - 16.667 O Finance charge - $500 and Depreciation expense - 16,667 O Finance charge - 4,500 and Depreciation expense - 12.500 O Finance charge - 3,127 and Depreciation expense - 12,500