a) Explain the accounting treatments for Development Expenditure as required by International Accounting Standard (IAS) 38: Research and Development (5 marks). b) Beatrice Bainson runs a business altering and repairing clothes. When she started business on 1 January 2012, she bought a Scoopatitch II sewing machine for GH2,500. She depreciates sewing machines using the straight-line method at a rate of 20% pa, and she charges a full year depreciation in the year of acquisition and none in the year of disposal. The business has now grown such that she needs a faster machine, and she will upgrade to Scoopatitch V during December 2015. The Scoopatitch salesman has offered her a part exchange deal as follows: Part exchange allowance for Scoopatitch II GH750 Balance to be paid in cash for Scoopatitch V GH4,850 Required i) Show the ledger entries for the year ended 31 December 2015 to reflect this transaction. 7 Marks ii) Show the relevant extracts in the appropriate financial statements.