King Ltd bought a machine on 30 June 2020 at a total cost of 768,200. The supplier's invoice shows this sum was made up of the following items: Jack Ltd purchased a property on 1 January 2019 for 1,400,000 and they intend to hold for long-term capital appreciation. The land element is 700,000 and the buildings element is expected to have a useful life of 50 years. On 31 December 2019, the fair value of the property had risen to 1,480,000. Required: - In accordance with IAS 16 calculate the cost figure at which the machine bought by King Ltd should initially be measured and explain the correct accounting treatment for the expenditure that cannot be capitalised as part of the machine's cost - Show how the property would be shown in the financial statements of Jack Ltd at 31 December 2019 if Jack adopts i. A cost-based policy ii. A fair value policy King Ltd bought a machine on 30 June 2020 at a total cost of 768,200. The supplier's invoice shows this sum was made up of the following items: Jack Ltd purchased a property on 1 January 2019 for 1,400,000 and they intend to hold for long-term capital appreciation. The land element is 700,000 and the buildings element is expected to have a useful life of 50 years. On 31 December 2019, the fair value of the property had risen to 1,480,000. Required: - In accordance with IAS 16 calculate the cost figure at which the machine bought by King Ltd should initially be measured and explain the correct accounting treatment for the expenditure that cannot be capitalised as part of the machine's cost - Show how the property would be shown in the financial statements of Jack Ltd at 31 December 2019 if Jack adopts i. A cost-based policy ii. A fair value policy