4.1 Answer the following short questions with reference to the guidelines provided in IFRS: 4.1.1 Define the term Property, plant \& equipment as provided by IAS16(2 marks). 4.1.2 Explain the term depreciation. Differentiate depreciation from impairment loss. (2 marks) 4.2 Komani Ltd purchased a machine on 1 January 2019. The following details are provided to you in relation to the purchase, installation and testing of the machine. Aaditional intormation: 1. The purchase price of R180000 (Cash purchase price as on 1 January 2019 is R147720) is only payable on 31 December 2019. 2. The administrative costs are of a general and indirect nature. 3. The costs of testing comprise costs incurred to produce samples while testing whether the machine is functioning properly. Samples were sold for R2500. 4. The pre-production costs were necessary to bring the machine to the condition necessary to be able to operate in the manner intended by the management. 5. A liability exists to dismantle and remove the machine at the end of its useful life at a cost of R35000 and the present value of it is correctly calculated as R17000. Required: Show a detailed statement of the cost at which the machine will be recognised in the books of Komani Ltd. (3 Marks) 4.3 Zeus Cartage Limited is a national carrier of fresh produce. They own a number of vehicles. The following information relates to one of such vehicles. The truck was purchased for cash on 1 January 2019 for R390000. Due to the high incidents of road fatalities the government introduced legislation that requires all long distance vehicles to undergo roadworthiness inspections every two years. The following significant parts were identified. - The engine was allocated a cost of R210000 and expected to travel 300000km after which, it would have no residual value. - The chassis was allocated cost of R 110000 and had an estimated useful life of 5 years and R10000 residual value. - The major inspection for roadworthiness was allocated a cost of R70000. The directors of Zeus Cartage Limited felt that the previous inspection had not been performed properly and, given that the safety of its employees was at stake; decided to perform another inspection on 31 December 2019 at a cost of R72000. The truck travelled 97000km in 2019 Required: Prepare all Journal Entries relating to the truck for the year ended 31 December 2019. (15 marks)