On January 1, 2017, Spexcer Company signs an 8-year non-cancellable lease agreement to lease a plant from Jamaica Equipment Ltd. Collectability of lease payments is reasonably predictable and no important uncertainties surround the amount of costs yet to be incurred by the lessor. The following information pertains to this lease agrcement. - The agreement requires equal rertal payments at the end of each year of $100,000. - The plant has an estimated econcmic life of 8 years, with no residual value. Spencer depreciates similar plants on the straight-line method. - At the termination of the lease, the title to the plant will be transferred to the lessee. - The rate implicit in the lease is 13% and this is known by Spencer Company. PVIF A10%,8=5.3349 Required: In light of IAS 17 Leases answer the following questions from the standpoint of the lessee, Spencer Company. (i) Describe the lease type and the rason for your classification. (2 marks) (ii) Present the journal entries at inception of the lease (January 1, 2017) and at the end of the ( 6 marks) first year (December 31, 2017). (iii) Present the financial statement extracts as at December 31, 2017. (2 marks) [Total 10 marks