Billience Plc buys used Machines which it reconditions and sells on to customers. The Companys inventory at the end of its most recent accounting period included the following machines: Purchase price Reconditioning cost Expected further Expected Incurred to date costs before sale selling price $000 $000 $000 $000 Machine W 51,500 3,250 - 62,500 Machine X 78,750 4,250 2,000 87,500 Machine Y 92,250 2,500 10,500 115,000 Machine Z 41,500 0 4,500 47,500 264,000 10,000 17,000 312,500 Selling expenses are expected to absorb 4% of the expected selling price. I. Explain why it is not permissible to value the inventory of machines at their total purchase of $ 264,000,000 or at their total selling price of $312, 500,000.00 ( 2 Marks) II. Compute the value at which the inventory of machines should be measured in the companys financial statements (6 Marks) III. Explain why International standard IAS2 Inventories does not apply to construction contracts (2 Marks)