QUESTION - 1 B) ACCOUNTING FOR PRICE LEVEL CHANGES (15Marks) Solet commenced trading on 1 January 20X2 as a ships chandler. The capital in cash was 15,000. On that date A. Solet purchased a boathouse for 10,000 and a boat for resale at a price of 5,000. The boathouse is leasehold over a period of 50 years and depreciated using the straight line/fixed instalment method. The replacement cost of the boathouse on 31 December 20X2 was estimated to be 13,000. The boat was sold on 1 July 20X2 for 8,000 and on the same day an identical boat was purchased for 6,000. This was unsold at 31 December 20X2 and is estimated to have a replacement cost of 7,500. The RPI at 1 January 20X2 stood at 100, at 1 July 20X2 was 105, and at 31 December 20X2 was 110. You are required to prepare a comprehensive income statement for the year and statement of financial position at 31 December 20X2 using: a) Historical cost accounting (HCA); (5 Marks) b) Current Cost Accounting (CCA; using replacement cost); (5 Marks) c) Current purchasing power accounting (CPPA); (5 Marks)