Q2. Conceptual framework {5 Marks) After conducting an audit of the accounts of Parramatta Ltd, you discover that the following transactions and events were recorded during the current year. Parramatta Ltd uses the historical cost syst. 1. The company borrowed $6M] from a hank at an interest rate of 111% to construct a new warehouse. At the completion of construction, the loan was repaid and the following entry was made: Bank Loan 500000 Warehouse EDDIJD Cash at Bank Ed 2. A patent with a cost of Sldd Bill] was being amortised over its useful life of 8 years. The amortisation entry made at the end of the current year was: Retained Earnings 2D DOD Patents 2D DUI} 3. A speedcontrol device was installed on each of the company's 3 delivery trucks at a cost of $3M] each plus GET. The transaction was recorded as follows: Maintenance Expense 2 40!] Cash at Bank 2 4oo 4. At the beginning of the current year, a new vehicle was purchased for $36 00d. The vehicle had an estimated useful life of 4 years. Depreciation expense for the year was recorded as follows in order to avoid reporting a loss: Depreciation Expense coco Accumuiated Depreciation Vehicle 2000 Required (a) For each item, determine which accounting concept(s) (if any) is violated, and explain why also Indicate the correct treatment