a. Determine the total carrying amount of the cargo container as at 31 December 2022.

b. Determine the treatment of the exchange of the radar system.

Granada Limited owns various business operations. It operates three hotels and a cargo container vessel and has several buildings for investment purposes. The profit of the company in 2023 exceeded HK\$600 million. Granada Limited's financial year ends on 31 March annually. Shipping business Granada Limited operates a cargo container ship delivering containers overseas. The cargo container ship was acquired on 1 April 2012. Details of the cost of the container vessel and its components were: There was no other capital expenditure on the shipping business from 1 April 2012 to 31 December 2022. The cargo container vessel has operated 90,000 hours from 1Apri/20H/O/2 to 31 March 2022. From 1 April 2022 to 31 December 2022, the ship travelled for 3,000 hours. In 2022, the radar system of the container ship malfunctioned frequently and Granada Limited received warnings from the Marine Department. Radar manufacturer Zimmad offered the most advanced model 'Sirius' by an exchange of the existing 'Southern Cross' radar system in the ship of Granada and additional cash of $15,000,000. The market price of 'Sirius' was $23,000,000 and had a useful life of 20 years without residual value. Granada Limited accepted the offer and considered this an exchange with commercial substance. The container ship stopped operation from 31 December 2022. During the exchange of the radar system, Granada Limited upgraded the compartments and fittings at a cost of $1,225,000 and repainted the body of the container vessel at a cost of $800,000. After the upgrade, it was estimated the compartments and fittings will have the same useful life as the hull (i.c. 29 years from 1 April 2023). All of the renovation was completed on 31 March 2023. Management estimated