Given information for questions 17 to 18: Molapo Cycles is a Close Corporation which was started on 1 March 2003, by two friends, Ramogwerane and Hlogotlou. Molapo CC has a distribution license in the Southern African region to supply Specialized cycling merchandise and equipment. In order to finance their operations they admitted an additional member, Theka, a millionaire from Sehlakwane into the CC. The following information pertains to the business activities of the CC for the year ended 28 February 2020: Extract of balances as at 28 February 2020: Member contribution: Ramogwerane. R 468 750 Extract of balances as at 28 February 2020: Member contribution: Ramogwerane. Member contribution: Hlogotlou Member contribution: Theka. Loans to member: Hlogotlou... Loans from member: Theka Land and buildings (at cost) Equipment (at cost). Accumulated depreciation Equipment (1 March 2019). Trade receivables control Bank Investment in Lucau Ltd Inventory (1 March 2019) Allowance for credit losses Settlement discount granted R 468 750 468 750 468 750 1 312 500 562 500 8 250 000 1 781 250 300 000 492 195 80 625 1 500 000 318 750 37 500 27 570 Additional information: (a) Provision must still be made for depreciation on equipment at 20% per annum according to the diminishing balance method. Included in the equipment at cost account is a machine which was purchased on 1 September 2019 for R137 250 cash, and immediately put to use. Machinery is depareciated at 16% per annum on a straight line method. No other purchases or sales of equipment occurred during the year. (b) A debtor who owes the business R33 295 was declared insolvent and his debt must be written off as irrecoverable. (c) Allowance for credit losses must be adjusted to R23 445. (d) Interest must still be provided for on the loan accounts to members at a rate of 15% per annum on the opening balances of any existing loans. No additional loans were granted this year. All loans are unsecured and immediately callable. (e) The investment in Starcatcher Ltd consist of 50 000 ordinary shares bought for R1 350 000 and was acquired in February 2019. Starcatcher Ltd is a listed company and the investment was required for trade purposes. On 28 February 2020, the fair value of the investment amounted to R1 800 000 (1) The closing inventory amounted to R189 375. QUESTION 17 (4 marks) Which one of the following alternatives represents the correct amount that must be disclosed as non- current assets in the statement of financial position of Molapo Cycles for the year ended 28 February 2020? 1. R 9731 250 2. R 9 561 270 3. R 9451 470 4. R 9 440 490 QUESTION 18 (5 marks) Which one of the following alternatives represents the correct amount that must be disclosed as current assets in the statement of financial position of Molapo Cycles for the year ended 28 February 2020? 1. R3 714 830 2. R3 817 955 3 R4 038 275 R4 014 830