On 1 March 2020Holmes Ltd enters into a binding agreement with a New Zealand company, which requires the New Zealand Company to construct an item of machinery for Holmes Ltd. The cost of the machinery is NZ$750,000. The machinery is completed on 1 June 2021and shipped FOB Auckland on that date. The debt is unpaid at 30 June 2020, which is also Holmes Ltd's reporting date.The exchange rates at the relevant dates are:1 March 2020A$1.00 = NZ$1.2030June 2020A$1.00 = NZ$1.301June 2021A$1.00 = NZ$1.25Required:a)Determine the amount inAUD, as at:1 March 2020; and30June 2020.(2 marks)b)Prepare the journal entries for the above dates, up to 1 June 2021,showing the amount of exchange gain or loss(5 marks).