On 1 January 2015, 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 2015 is 280,000 and useful economic life is six years. The lease period is five years and the company is required to make five lease payments of 60,000 each. These payments fall due on 1 Jan each year. Discount rate is 4%. The company uses the sum of digit method in the allocation of finance charge. Identify the finance charge in Income Statement for year end 31 Dec 2015. 8,880 20,000 0 22,200 0 11,100 w