QUESTION FOUR Mountain Ltd hires out plants on long term operating lease. On January I 2014, it entered into a seven year lease on a mobile crane. The terms of the lease are: Shs 1,750,000 payable on I January 2014, followed by six rentals of Shs 700,000 at the end of each year from December, 2014 to December, 2019. The crane will be used and returned to Mountain Ltd on 31t December, 2019. The crane cost Shs 8,880,000 and has a 25 year useful life with no residual value Required:- a) Calculate the annual renfal income that will be claimed by Mountain Ltd. (8 marks) b) Prepare extracts from the income statement and balance sheet of Mountain Ltd for 2014, 2015, 2015 and 2016 (12 marks)