David Shampapi is the owner of Shampapi (Pty) Limited with a 28 February year-end. The business registered office issituated at Divundu in Kavango Eastregion. Shampapi (Pty) Limited processes fresh produce obtained from surrounding small scale farmers as well the correctional facility nearby. The final products are then delivered to various businesses in Zambezi, Kavango East and West and Otjozondjupa regions. David who was previously a successful rugby player has been in business for many years after retiring from his rugby career. His business has earned a good reputation in the community and is regarded as a reliable food supplier. During January 2022, Shampapi (Pty) Limited purchased a new processing equipment for N$3 000 000 from a vendor in Pretoria, South Africa for which immediate payment was made via Electronic Fund Transfer (EFT). The equipment will be used to processfarm produce at its main processing complex atDivundu. The accountant of Shampapi(Pty) Limited Ms.HildergardHaikera, a recent accounting graduate, has recorded this transactionas an expense in the statement of profit or loss and other comprehensive income. In addition, Shampapi (Pty) Limited paid Ms. Hildergard Haikera N$ 40 000 on 31 January 2022 as salary, and on this day, the business which was going through some cash flow problems dueto the recent acquisition of the processing equipment, received N$2 000 000 as a loan from Davids sister Diana Shampapi who resides at Rundu, repayable at the end of January 2028 in full bearing no interest. REQUIRED a) With reference to the conceptual framework for financial reporting, explain how the transaction of the purchase of Equipment should be recognized and presented in the financial statements of Shampapi (Pty) Limited on 28 February 2022. (10 marks) b) Discuss with reasons, how Shampapi(Pty) Limited should recognize, present and disclosethe N$40 000 and N$2 000 000 as at 28 February 2022. (10 marks)