You are looking at the financial statements for Summer Ltd, for the year ending 30 June 2021 and you notice Summer Ltd has prepared general purpose financial statements. (a) Does Summer Ltd need to apply accounting standards when preparing their financial statements? Yes or No? ................... (1 mark) Provide a reason to support your decision: (no reason, no mark!) ] (b) On 1 January 2021, Summer Ltd purchased a machine, with an expected useful life of 5 years, for $200 000. However, on 1 February 2021, the machine exploded and is unable to be repaired and will need to be replaced. Assuming the $200 000 is material for the year ending 30 June 2021, use the AASB Framework to justify if the machine meets any of the definition of assets, liabilities, equity, income or expenses. Provide the reason(s) for your view with reference to the definition criteria for the elements of the financial statements and clearly identify any assumptions made. (4 marks)