(Total: 30%) Question 3 You should address all five issues in this question. Solar Pic is a company which develops and manufactures electronic measuring equipment - Frequency counters. Solar Pic prepares nancial statements at the 30th of September each year and applies this consistently. Issue 1 On 1 October 2018, Solar Plc purchased an electronics manufacturing piece of equipment. The purchase price was 264,000 and Solar was offered an 18% discount. They also incurred the following expenditures: Expenditures Delivery and handling fees 17,500 Import Duties 11,020 Refundable value-added taxes 18,480 Installation fees 32,000 6 CONTINUED OVERLEAF Salary of officer who calculates wages of all employees 15,000 Legal fees for building permits 23,000 Invoice for training of 4 mechanics to use this equipment 32,000 The present value of the estimated dismantling and site 47,000 restoration fees 0 The estimated residual value ofthis equipment is 24,000 and the estimated useful life is 10 years. The straight-line method is adopted to calculate depreciation. o On 30 September 2020, Solar Plc hired valuers to assess the fair value of the equipment and the valuation price was 290,000; the residual value remained the same but the remaining number of years of useful life was extended to 10 years. a On 30 September 2021, another valuation took place and the valuation for this equipment was 254,000. The residual value and the useful life were not adjusted. Required: . For the equipment, calculate how much needs to be recognised in the initial recognition of the cost, fully explaining your reasons for your workings; your explanation should reference and relate to the relevant international accounting standard. a For the equipment, calculate and explain how the above changes of value should be reected in the nancial statements of 2020 and 2021 under the revaluation model; again, your explanation should refer to relevant accounting standards. 1' nun-e