sale and lease back

1.

(2) Frayn entered into a sale and finance leaseback arrangement on 1
Jan 20X1 when the carrying amount of the asset was $70,000,
based upon a 10 year useful life, and sale proceeds were at fair
value of $120,000. The remaining useful life of the asset was five
years. The lease provided for five annual rentals of $30,000 payable
in arrears on 31 December of each year. The interest rate implicit in
the lease was 8%.
Calculate the net expense recognised in profit or loss in the
year to 31 December 20X1.

A $33,600
B $23,600
C $13,600
D $11,600

dear sir plzz tell me y we less release profit when finding net expense