Corona is in the trading business dealing with heavy machinery. She imports machines from overseas and then sells to customers. On 1 April 2019, she injected RM27,000 cash capital to start the heavy machinery business. On the same date, she had purchased a specialised machine at RM9,000 and a truck at RM18,000 to deliver machinery to customers. The truck was estimated to have 9 years of useful life. The replacement cost of the truck on 31 March 2020 was estimated to be RM23,400. The specialised machine was sold on 1 October 2019 for RM14,400 and on the same day an identical machine was purchased for RM10,800. This new machine was unsold as at 31 March 2020 and was estimated to have a replacement cost of RM13,500 at that date. The related general price indices are as follows: Date Price Index 1 April 2019 100 1 October 2019 105 31 October 2019 110 31 December 2019 115 31 March 2020 120 Required: Prepare the statement of profit or loss for the year ended 31 March 2020 and statement of financial position as at 31 March 2020 using the following normative theories: (a) Historical cost accounting which value assets at the date of acquisition and aims to maintain the financial capital intact. (6 marks) (b) Current replacement cost accounting by Edwards and Bell which differentiates between profits from trading and gains that result from holding an asset. (11 marks) Corona is in the trading business dealing with heavy machinery. She imports machines from overseas and then sells to customers. On 1 April 2019, she injected RM27,000 cash capital to start the heavy machinery business. On the same date, she had purchased a specialised machine at RM9,000 and a truck at RM18,000 to deliver machinery to customers. The truck was estimated to have 9 years of useful life. The replacement cost of the truck on 31 March 2020 was estimated to be RM23,400. The specialised machine was sold on 1 October 2019 for RM14,400 and on the same day an identical machine was purchased for RM10,800. This new machine was unsold as at 31 March 2020 and was estimated to have a replacement cost of RM13,500 at that date. The related general price indices are as follows: Date Price Index 1 April 2019 100 1 October 2019 105 31 October 2019 110 31 December 2019 115 31 March 2020 120 Required: Prepare the statement of profit or loss for the year ended 31 March 2020 and statement of financial position as at 31 March 2020 using the following normative theories: (a) Historical cost accounting which value assets at the date of acquisition and aims to maintain the financial capital intact. (6 marks) (b) Current replacement cost accounting by Edwards and Bell which differentiates between profits from trading and gains that result from holding an asset. (11 marks)