Question #6 (10 marks) Part A (4 marks) For cach of the following items, indicate whether these expenditures incurred subsequent to acquisition, should be capitalised or expensed in the period when it as incurred by placing an "X" in the appropriate cell in the table below. Capitalised Expensed a 1. $7,000 paid to replace a wooden floor with a concrete floor. 2. $700,000 paid for relocating company headquarters 3. $6,000 to replace 18 tires on a trailer 4. $200,000 paid for an addition to a building Part B. (3 marks) Manufacturing Incorporated (MI) purchased land on January 1, 2020, which it started to operate as a gravel pit. The gravel pit will be operating for the next 5 years. At the end of the 5 years, MI will be required to incur an estimated cost of $5 million to restore the land. This is required by government legislation. The interest rate that reflects the risks to MI is 8% Required: 1. At what amount should the asset restoration cost liability be recorded on January 1, 2020? (2 marks). 2. What is the interest expense associated with the liability for the year 2020? (1 mark) Part C. (3 marks) On January 1, 2020, Bing Company acquired equipment on credit. The terms were $8,000 cash down payment plus payments of $6,000 on January 1 for each of the next four years. The implicit interest rate was 6%. The equipment's list price was $30,000. Additional costs of $2,000 were incurred to install the equipment Required: Determine the value at which Ling should report the acquired asset. Show your calculations. For any measurement involving present value concepts, provide your calculations