Question Two (2) Christ is the Answer (CITA) Company limited is domicile and operats in Ghana. It has several operations and has made several transactions during the year ended 31 December 2021. The company has transactions and other reporting situations that are more technical to the accountant and thus he needs your assistance. You have been given the following and you are required to advise on the treatment of the following in the financial statements for the year ended 31 December 2021. a) CITA Itd received the following government grant in the year ended 31 December 2021: i. Grant of GH80,000 to acquire a machine. The cost of the machine was GH200,000 and its useful life is 8 years. CITA ltd acquired the machine on 1 January 2021 and recognizes depreciation on a straight-line pro-rata. ii. Grant of GH20,000 to the administrative expenses during 2021-2025. CITA assumes to spend GH6,000 annually in 2021-2024 and GH 4,000 in 2025 (GH28.000 in total). Grant of GH6,000 to cover the administrative expenses made by CITA in 2019-2020. At the start of the year ended December, 31 2021, the company made revaluation to GH12,000,000 of its building that had a cost of GH 10,000,000 with zero residual value and 10 years useful life. At the date of revaluation, the asset had 6 years remaining useful life. The company has always depreciated the building on straight line basis. Required: i. Show how CITA company ltd will report the received grants for the year ended 31 December 2021 Page 4 of 13 (Use extracts of financial statements i.e. statement of profit or loss and other comprehensive income and the statement of financial position). (12 Marks) ii. Show how CITA company Itd will report the building for the year ended 31 December 2021 (Use extracts of financial statements i.e. statement of profit or loss and other comprehensive income and the statement of financial position). (6 Marks)