QUESTION $1[50$ MARKS$][16$ MARKS$]$ Hi$-$Tech company sells equipment with a refund policy, if the customer is not satisfied, that equipment may be returned for a full refund. Sales for the year come to P$1,050,000.$ Required: For each of the following scenarios, explain whether a pure liability, provision or contingent liability should be reported or disclosed at year$-$end, or whether the refund policy should be ignored. a$.$ At year end, it is reliably estimated, based on past experience that only $5\%$ of sales will still be returned for a full refund. $(8$ marks$)$ b$.$ At year end, it is not possible to estimate the possible returns and related refunds. $(8$ marks$)$ QUESTION $2[14$ MARKS$]$ Illustrate with examples, the difference between historical cost vs fair value methods of valuation. $($In your response, indicate the effects of each on the financial statements$).$