Question 2 Answer all parts of this question On 1t January 20X0, Fargo plc was started as a new business by its owners, who contributed 60,000 in cash as equity capital. Fargo plc recorded the following transactions during the month of January 20X0: 2nd January: Purchased 100 units of inventory for 500 per unit, paid in cash 5th January: Sold 80 units of inventory for 570 per unit, received in cash 11th January: Purchased 50 units of inventory for 540 per unit, paid in cash The following data is available about the replacement cost of Fargo plc's inventory Replacement cost (per unit of inventory) 520 550 Date 5th Jan 20X0 15th Jan 20X0 On 15th January 20X0, Fargo plc could have sold its inventory at a price of 590 per unit. Required: (a) Compute realised and unrealised holding gains (losses) using current replacement cost accounting for the period 1t- 15h January 20X0, showing all your workings 6 marks (b) Showing all workings, prepare Fargo plc's balance sheet at 15 January 20X0 and income statement for the period 1st 15h January 20X0 using: i. Current replacement cost 7 marks Current realizable value ii. 12 marks Total - 25 marks)