Q 2 Largo Plc On 1st January 2013, Largo plc entered into a lease agreement to acquire a machine. The terms of the lease require Largo to make five annual payments of 36,000 in advance. The fair value (cash price) of the asset at the date of the lease agreement is 150,000 and the asset has an economic life of six years with a residual value of 6,000. The rate of interest implicit in the lease is 10.05%. The company's year-end is 31 December 2015. Required: Under IFRS 16 Leases a) Compile the lease liability table showing all years of the lease term. b) Calculate the depreciation charge (Remember, depreciation is charged at the lower of lease period or economic life) c) Prepare the extracts of the financial statements for the year ended 31 December 2015