Entity A leased a machinery on 1 January 2022. It would pay £120,000 p.a. at the end of each year for the next 4 years to the lessor. The fair value is estimated to be £350,000. The useful economic life of this machinery is 7 years. Required: (1) Determine the implied interest rate of the lease. (ii) Show the amounts that you would disclose in the statement of financial position and income statement for 2022 relating to this lease.