Tangy Chemicals plc have decided to enter into a four year lease contract to acquire new manufacturing equipment commencing from $1$ January $20$X$1.$ Under the lease contract they have to pay four instalments of $35,000$ each payable on $1$ January each year commencing $1$ January $20$X$1.$

The implicit rate of interest in the contract is $20\%$ per annum. The discount rates are as follows; Year $10\mathrm{.}833,$ Year $20\mathrm{.}694,$ Year $30\mathrm{.}579$ and Year $4-0\mathrm{.}482$

The manufacturing equipment is expected to have a useful life of $8$ years.

REQUIRED:

Calculate and prepare the relevant figures and disclosures that should be recorded in the Profit or Loss and Statement of Financial Position $($both asset and liability disclosures$)$ for the term of the lease.