Section A (35 marks) This question is COMPULSORY Question 1 a) Marstock Ltd has leased an item of plant under the following terms: Commencement of the lease was 1 January 20X2 Term of lease 5 years Annual payments in advance $12,000 Implicit interest rate within the lease 8% per annum The company's depreciation policy for this type of plant is 20% per annum on cost Required: Prepare extracts of the income statement and statement of financial position for Marstock Ltd for the year to 31 December 20X3 for the above lease according to IFRS16 and show your workings. Make sure to show current and non-current liabilities separately. (10 marks) b) Automotive plc sells goods to a customer for 15,000. The sales contract stipulates that the customer will pay 5,000 when the goods are delivered (and the customer obtains control over them) and will then pay a one-off 10,000 three years after delivery. Assume an effective interest rate of 8%. Required: Calculate the following (and in each case show your workings): (i) The amount of revenue which should be recognised at the delivery date. (i) The total finance income and how much of it should be recognised at the end of each of the three years as finance income. Round figures to two decimal points. (10 marks) Section A (35 marks) This question is COMPULSORY Question 1 a) Marstock Ltd has leased an item of plant under the following terms: Commencement of the lease was 1 January 20X2 Term of lease 5 years Annual payments in advance $12,000 Implicit interest rate within the lease 8% per annum The company's depreciation policy for this type of plant is 20% per annum on cost Required: Prepare extracts of the income statement and statement of financial position for Marstock Ltd for the year to 31 December 20X3 for the above lease according to IFRS16 and show your workings. Make sure to show current and non-current liabilities separately. (10 marks) b) Automotive plc sells goods to a customer for 15,000. The sales contract stipulates that the customer will pay 5,000 when the goods are delivered (and the customer obtains control over them) and will then pay a one-off 10,000 three years after delivery. Assume an effective interest rate of 8%. Required: Calculate the following (and in each case show your workings): (i) The amount of revenue which should be recognised at the delivery date. (i) The total finance income and how much of it should be recognised at the end of each of the three years as finance income. Round figures to two decimal points. (10 marks)