Question 3 (5 Marks) A fishing licence was purchased by Thandeka (Pty) Ltd, and the directors of the company are determined to recognise the licence as a physical asset as it is written on a paper. Do you agree with the decision made by Thandeka (Pty) Ltd? Question 4 (10 Marks) A machine was acquired by Dee Limited which needs a specialised software in order to operate. Explain if the entity should recognise the software as tangible or intangible. Question 5 (25 Marks) Thando Limited was incorporated during 2021: Preliminary costs (legal costs incurred in connection with the start-up of the company) of R10000 were paid on 2 January 2021. 2000 ordinary no par value shares were issued at R100 each on 5 January 2021. Share issue costs of R2000 were paid on 5 January 2021. On 15 January 2021,500 of these shares were converted into 12% preference share equity. The draft statement of comprehensive income for 2021 , before processing any adjustments for the above transactions, reflected total comprehensive income for 2021 of R120 000 (components of other comprehensive income: R0). The following is an extract from the financial statements of Thandeka (Pty) Ltd for the year ended 31 December 2021