Question 1: (3 marks) Select the best choice and give explanations for each choice that is EITHER selected OR unselected. (Complete the answers in the blank) 1.1 Masa Co is considering purchasing a retail shop in the high street. The market value of the shop is $500,000. Transaction costs to acquire the shop would be $45,000. Spendalot Co expects to use the shop for a set period of time, and the discounted future cash flows from its use are calculated to be $660,000. What is the fair value? a. 660,000 b. 545,000 c. 500,000 d. 455,000 1.2 When should an expenditure be recorded as an asset rather than an expense? a. Never. b. Always. c. If the amount is material. d. When future benefit exists