Question 2 CBC Plc was recently incorporated and is involved in the manufacture of ventilation equipment. The company arranged a grant of K5 million on condition that it creates 80 jobs and maintaining them for five years. K 3 million is received when the 50 jobs were on 1 April 2017 The remaining K 2 million was receivables after 3 years, provided that the jobs increased to 80 by the end of the third year. The entity had 80 jobs at the beginning of year three and there is reasonable assurance that this level of employment will be maintained. The cash received as grant subsidised the acquisition of equipment that had a cost K 15 000 000. The equipment had a life of 8 years when first purchased on 1 April 2017. During the year ended 31 March 2020, CBC Plc sold some items of plant that had originally cost K 6 000 000, for . CBCs policy is to charge depreciation of 30% on the reducing balance basis, with no depreciation charged in the year of disposal. REQUIRED a) IAS20 Grants discusses two types of grant: Capital Grants and Revenue Grants. Outline the recognition criteria for each type of grant. (6 marks) b) Calculate the amounts of the grant to report (i) in the statement of Profit or Loss, and (ii) in the Statement of Financial Position (7 marks) c) Calculate the amount of profit or loss on disposal of the items of plant in line with provisions of IAS 16. (5 marks) d) Calculate the carrying amounts of the remaining items of plant in line with provisions of IAS 16. (7 marks