Question: On 1st January 20X2, Bailey plc leased a machine under a four-year lease with four annual lease payments of 25,000 made on 31st Dec of

On 1st January 20X2, Bailey plc leased a machine under a four-year lease with four annual lease payments of 25,000 made on 31st Dec of each year. The lease has an implicit annual interest rate of 12%.

What amount will appear under current liabilities in respect of this lease in the statement of financial position of Bailey plc as at 31st December 20X2?

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