On 1 January 2011, Marine Limited took delivery of its newly constructed luxury ocean-finer (Arican Queen) at a cost of R5 000 million, Marine Limited has operated numerous luxury ocean-liners across the seven seas of the world for over fifty years and in order to maintain its reputation as the most as the most elite of ocean liners it replaces its ocean-liners every ten years even though the economic life of ocean-liners is proven to be approximately Why years. The residual value of African Queen I was appropriately determined to be: - R4000 milion on 31 December 2016, 2017 and 2018 - R4 850 million on 31 December 2019. On 31 December 2000, because of declining demand for ocean-liner services resulting from the extended global economic downturn arising from world Covid 19 Pandemic Marine Limited decided that it would continue to use African Queen for a further ten years (ie a total useful life of 15 years.) On 31 December 2020, the fair value of an equivalent ocean liner that is: - 5 years old is R3 200 milion - 10 years old is R3 000 million, and - 15 years old is R2000 million If Marine Limited was to sell the African Queen it on 31 December 2020, selling expenses of R320 million would be incurred. At 31 December 2020, Marine Limited appropriately estimated the expected future not operating cash flows of keeping the African Queen in use to be an inflow of R500 million per annum and that the African Queen I will realise upon disposal R2 500 milion (net of disposal costs) ten years hence (ie on the expected date of disposal). An appropriate discount rate in 9% per annum Required: Discuss how Marine Limited should account for the African Queen in its 31 December 20.5 company financial statements. Your answer should be limited to the recognition and measurement issues only ignore presentation and disclosure)