a. Define an investment property. (2 marks) b. State three (3) different circumstances in which a property might be classified as an investment property. (3 marks) c. Entity A started construction of investment property X in 2007 and investment property Yin 2008. X was completed in the first quarter of 2009; Y is expected to be completed in2010. The cost of construction as of 31 December 2008 amounts to C10 million for X andC5 million for Y. During 2009, A incurred additional C1 million costs for the completionof X during the first quarter and C6 million for Y. As part of the 2008 year-end procedures,A performed a valuation of the investment property under construction. This revealed thatthe fair value of the properties at 31 December 2008 amount to C14 million for X and C8million for Y. At 31 December 2009, the fair value of X is C16 million, and the fair valueof Y is C14 million. Entity A measures its investment properties at fair value and does notearly adopt IAS 40A. How does A account for the investment property X and Y? i. Initial Recognition (2 marks) ii. Fair value gain/loss (4 marks) iii. FS recognition (2 marks) d. According to IAS 40, list two (2) examples of investment properties and two (2) that arenot considered investment properties. (4 marks) e. List three (3) disclosures as required by the standard if the entity chooses the: i. Cost-based method (3 marks) ii. Fair value method (3 marks) f. How is investment property different from PPE?(3 marks) g. According to IAS 16 (PPE) what are subsequent expenditures and how does the standarddirects treatment of these?(4 marks)