Question 3 (9 marks) Early in 2019, Victoria Manor Senior's Residence Ltd. (Manor), in Victoria, BC, was acquired by IPR Corp. (IPR), a publicly traded property management company. Shortly after the acquisition, IPR determined that Manor required several expenditures related to its building and other assets in order to meet IPR's strict quality standards. The following is a list of the expenditures that were completed during 2019: Expenditure item Fix holes in the walls Paint the dining hall Replace all wooden railings with metal railings Replace old windows with energy efficient windows (fourth floor)* Add wheelchair lifts to the four company transport vehicles Replace the large fan in the air circulation unit in the underground parking garage Total Description There are many marks on the walls in the high-traffic areas. The paint colours are faded and outdated. Bright, modern paint colours should be chosen. The wooden railings on the staircases are old and NOT sturdy. The replacement metal railings should have a special gripping surface and come with a 10-year warranty. The windows are old, single-paned and NOT energy efficient. The replacement windows should be triple-paned windows and come with a 15-year warranty. Cost $ 6,500 $7,500 $8,000 $6,000 Wheelchair lifts are required on the transport vehicles to ensure that all residents are able to participate in the weekly outings. $16,000 The large fan is broken and the air is NOT circulating properly, causing an air quality hazard. The replacement fan should come with a five-year warranty. $9,000 $53,000 *Window replacement will occur once a year, one floor per year, starting in 2019 with the fourth floor, which is the top floor of the building. The third-floor window replacement will occur in 2020, the second-floor replacement in 2021 and the first-floor replacement in 2022. The costs incurred in 2019 relate to the fourth floor replacement only. Manor's year-end financial statements for 2019 indicate a significant increase in the repairs and maintenance account compared to 2018. Upon further investigation, it was determined that John Matyas, Manor's bookkeeper, charged the total of all the 2019 expenditures to the repairs and maintenance expense account. right 2020 Chartered Professional