At 1 January 2015, the non-current asset balances of Sunny Ltd comprised the following: The company's policy is to charge depreciation at the following rates: Buildings: 2% straight line, no residual value Fixtures: 5% straight line, no residual value Plant and equipment: 15% reducing balance, no residual value The accounting policy of Sunny Ltd requires a full year's depreciation to be charged in the year of acquisition for all assets; however, no depreciation is charged in the year of sale. The following additional information is relevant to the calculation of depreciation for the year ended 31 December 2015. The amount of the original cost relating to buildings is $850,000, and these were purchased in June 2005. Sunny Ltd traded in a lorry (classified as plant and equipment) during the year and acquired a new one costing $50,000. A cheque for $25,000 was written by the finance director of Sunny Ltd, being the balance due for the new lorry. The lorry traded in had originally cost $40,000 in May 2009 and had a net book value of $28, 900 at 1 January 2015. Additional fixture improvements were carried out during the year, costing $190,000. Legal and architect s fees in relation to the improvements were also incurred, amounting to $8,000. Office furniture was purchased during the year for $30,000. Sunny Ltd incurred additional expenditure on the delivery and installation amounting to $5,000. Required: a Prepare accounting journal entries related to the non-current assets of Sunny Ltd for the year ended 31 December 2015. b Provide extracts of statement of financial position and statement of profit or loss and other comprehensive income for the non-current assets of Sunny Ltd for the year ended 31 December 2015. c What factors should the accountants of Sunny Ltd consider in determining the useful life of an asset? d Outline the general guidelines for determining whether expenditure on repairs should be capitalized rather than revenue expenditure