Deermont Ltd entered into a contract with Billwill Ltd to lease a specialised printing machine on 1 January 2023. Ownership of the machinery will not be transferred to Deermont Ltd at the end of the lease term. The contract meets the definition of a lease in terms of IFRS 16, Leases. The following terms apply to the contract: Lease term Initial payment Installment payable monthly in arrears Useful life of printer Lessee's incremental borrowing rate on 1 January 2018 Legal fees (incurred by Deermont Ltd) 5 years R600 000 R45 000 8 years 8% per annum R8 000 Based on the information above, depreciation on the right-of-use asset for the year ended 31 December 2023 will be written off: 1. Over 8 years 2. Over 5 years 3. No depreciation to be provided 4. Over 3 years