a) BestSafari Ltd started its business with a share capital of 120,000 on 1 July 2019 within a hyperinflationary economy. During the year the annual Inflation rate was 60.26%, represented by an Increase in retail price index (RPI) from 156 on 1 July 2019 to 250 on 30 June 2020. The average RPI for the year ended 30 June 2020 was 210. Extracts from the latest financial statements prepared on historical cost basis are set out below: Statement of financial position at 30 June 2020 Income statement for the year ended 30 June 2020 Vehicles, net 75,000 Revenue 96,000 Inventory 8,750 Cost of sales Cash 64,650 Purchases 30,000 Total assets 148,400 Closing inventory 8,750 21,250 Gross profit 74,750 Share capital 120,000 Operating expenses 41,350 Retained earnings 28,400 Depreciation 5,000 Total equity and liabilities 148,400 Profit for the year 28,400 The following information is relevant to the transactions during the financial year ended 30 June 2020: . Required: The company purchased the vehicles on 1 July 2019 for 80,000 in cash. The company's depreciation policy is to use a straight-line basis over the useful life of 16 years with no residual value. Purchases of inventory were made in the earlier half of the year at an estimated average RPI of 180. Assume that all revenues and operating expenses were cash transactions and accrued evenly throughout the year.