only answer multiple choice

Question $2($a$)($Nobleman plc$)$Using market prices, what is the$$initial$\text{'}$fair value' of the property to be recorded in the financial statements of Nobleman plc$?$Group of answer choices$120,00015,000,00012,000,00015,180,000$Question $2($a$)($Nobleman plc$)$Using entity specific prices, what is the$$initial$\text{'}$net realisable value' of the property for Nobleman plc$?$Group of answer choices$12,000,00014,820,00015,370,00015,120,000$Question $2($a$)($Nobleman plc$)$Using entity specific prices, what is the$$initial$\text{'}$replacement cost$\text{'}$ of the property for Nobleman plc$?$Group of answer choices$15,370,00015,120,00012,000,00012,120,000$

QUESTION $2$

On $1$ January $2021,$ Nobleman plc agreed to buy a luxury property in London for $12$ million from Aristocrat plc$.$ Contracts were exchanged in June $2021$ and over the six$-$month period from the agreement to the exchange of the contracts, London's property prices had significantly risen. Belgravia ple sold an identical property for $15$ million.

Nonetheless, in order to honour the gentlemen's agreement stipulated with the chief executive of Nobleman plc$,$ the director of Aristocrat plc agreed to exchange contracts at the original price of $12$ million.

The legal costs to Nobleman plc of buying the property were $120,000$ and the selling costs to Aristocrat plc were $180,000.$

Nobleman plc estimates that from the ownership of the property they can derive an annuity of $1$ million per year for the following $30$ years.

The cost of capital is expected to remain constant at $5\%.$

Requirement

$($a$)$ From the data provided in the question, identify various values for the initial measurement of the property in the financial statements of Nobleman plc$.$

$8$ Marks

$($b$)$ Paradox plc$,$ a company operating within the pharmaceuticals sector, is reviewing the fair value of certain assets in accordance with IFRS $13$ Fair Value Measurement.

The company carries an asset that is traded in different markets and is uncertain as to which valuation it should use. Under IFRS, the asset has to be valued at fair value. Paradox plc currently buys and sells the assets in the Asian market. The data in relation to the asset is set out below:

$\backslash$table$[[$Year to $31$ December $2020,$American market,European market,Asian market$],[$Volume of market $-$ units,$16$ million,$8$ million,$4$ million$],[$Price$,76,64,88],[$Cost of entering the market,$8,8,12],[$Transaction costs,$4,8,8]]$

Discuss, with relevant computations, how Bronson plc should 'fair value' the above asset. $6$ Marks

$($c$)$ Discuss, giving examples, the extent to which the recent 'crisis of fair$-$value accounting' $($Laux and Leuz, $2009)$ illuminates old accounting issues and trade$-$offs.

$11$ Marks

Total $25$ Marks