QUESTION $2[15$ MARKS$]$ On $1$ October $2014$ Gamma began to lease a machine. The lease gave Gamma the sole right to direct the use of the machine and receive all the economic benefits arising from its use. The lease was for a five$-$year term, with annual rentals of R$200,000$ being payable in advance. The first rental was paid on $1$ October $2014$ and the final rental is due for payment on $1$ October $2018.$ The total estimated useful life of the machine on $1$ October $2014$ was ten years. There are no terms in the lease agreement that allow the lease to be extended beyond the five$-$year term. The annual rate of interest implicit in the lease is $8\%.$ On $1$ October $2014$ when the first rental was paid Gamma debited R$200,000$ to profit or loss. Gamma has made no other entries regarding this lease in its draft financial statements for the year ended $31$ March $2015.8\%$ discount factors which may be relevant are as follows: $$ Cumulative present value of R$1$ payable in: $1$ year $0\mathrm{.}9262$ years $1\mathrm{.}7833$ years $2\mathrm{.}5774$ years $3\mathrm{.}3125$ years $3\mathrm{.}993$ Additional information Ignore taxation Required: Using calculations, discuss the accounting treatment of the whole transaction for the year ended $31$ March $2015.$ Hint: explain how the statement of financial position and statement of comprehensive income will be affected $?$