Use the data below to answer the questions in this section:

Stankovic

is preparing its financial statements for the year ended $31$ December $20$X$5.$ The

following issues are relevant:

$1.$ Financial asset: Stankovic acquired a short$-$term speculative investment

in $10,000$ of the equity shares of another entity on $1$ January $20$X$5$ at a cost of

$$3\mathrm{.}50$ each. Transaction costs of $1\%$ of

the purchase price were incurred. On $31$ December $20$X$5$ the fair value of these shares was

$$4\mathrm{.}50$ each. Where possible, Stankovic makes an irrevocable election

for the fair value movements on financial assets to be reported in other

comprehensive income.

$2.$ Financial liability: Stankovic issued a $$40$ million $5\%$ loan note on $1$ July $20$X$5.$ Interest is payable annually on $30$ June. The loan note is redeemable on $30$ June $20$X$9$

at a substantial premium, the impact of which is to increase the effective rate

of interest on the loan note to $7\%.$

$3.$ Revenue: On

$1$ January $20$X$5,$ Stankovic sold a machine for $$20$ million. The sales price

included maintenance of the machine until $31$ December $20$X$7($i$.$e$.$ three years

after the sale date$).$ The list price of

the machine $($without maintenance$)$ is $$20\mathrm{.}5$ million, and Stankovic normally

charges $$1\mathrm{.}5$ million per annum for maintenance.

Which of the following meet the definition of a financial asset in accordance with IFRS $9$ Financial Instruments?

$(1)$ An equity instrument of another entity.

$(2)$ A contract to exchange financial instruments with another entity under conditions which are potentially favourable.

$(3)$ A contract to exchange financial instruments with another entity under conditions which are potentially unfavourable.

$(4)$ Cash.

A$.(1)$ and $(2)$ only

B$.(1),(2)$ and $(4)$

C$.(1),(3)$ and $(4)$

D $.(4)$ only

In respect of the financial asset of Stankovic, what is the net impact in the statement of profit or loss for the year ended $31$ December $20$X$5?$

A $$9,650$ gain

B $$10,350$ gain

C $$10,000$ gain

D $nil gain

In respect of the financial liability of Stankovic, what is the finance cost to be recognised in the statement of profit or loss for the year ended $31$ December $20$X$5?$

A$.$ $$2\mathrm{.}8$ million

B$.$ $$2$ million

C$.$ $$1\mathrm{.}4$ million

D$.$$$1$ million

What is the amount of revenue which Stankovic should recognise in its statement of profit or loss for the year ended $31$ December $20$X$5$ relating to the contract for the supply and maintenance of its product?

A$.$ $$20$ million

B$.$$$17\mathrm{.}6$ million

C$.$$$16\mathrm{.}4$ million

D$.$ $$3\mathrm{.}6$ million