Oregon Limited built its own laboratory at a cost of 250,000. After 5 months of operation, a severe flood caused damage to the laboratory, which was repaired at a cost of 8,000. An extension with a reception area was added at the same time costing 34,000, and a new doorbell was added at a cost of 30. (a) Can these subsequent expenditures be capitalised? Explain your reasoning. (6 marks) (b) What is the advantage and disadvantage of using fair value for property plant and equipment (PPE) rather than historic cost? (4 marks)