1). Replacement Cost Sun Ltd has acquired a heavy road trailer a cost of 100,000 (with no breakdown of component parts). The estimated useful life is 10 years. At the end of the sixth year, the engine requires replacement, as further maintenance is uneconomical due the off-road time required. The remainder of the vehicle is perfectly road worthy and is expected to last for the next four years. The cost of the new engine is 45,000. The discount rate assumed is 5%. Whether the cost (original) of new engine can be recognised as the asset, and if so, what treatment should be followed