You have been recently appointed as Finance Manager at Total Printing (TP). TP is a company that manufactures printing equipment and provides extensive printing facilities. Your predecessor has left a file of some outstanding transactions and the finance director is concerned about the implications these issues will have on profit for the year. The year end is 31 March 20X8. Required: Explain how the transactions outlined in Exhibit 1 should be dealt with in the financial statements of TP for the year ended 31 March 20X8. Your answer should include journals. Exhibit 1 - Outstanding issues A. Shared printing facility In January 20X8, TP purchased a printing facility that is jointly owned with another entity, Kasur Printing. TP owns 55% of the printing facility and Kasur Printing owns 45%. They have agreed to share services and costs accordingly, with decisions regarding the printing facility requiring unanimous agreement of the parties. The total cost of the printing facility was Rs120 million and TP paid Rs90 million and Kasur Printing paid the remaining amount. The only entry in the financial statements was to record the payment of Rs90 million within property, plant and equipment. Kasur Printing has notified TP that for the first two months they have paid for insurance and other costs totalling Rs10 million. TP has not yet incurred any costs in relation to the facility and no revenue has yet been earned from the facility. B. Sale of printing machine On the 1 April 20X7, TP entered into a contract with a customer to sell an existing printing machine but will not transfer the machine over to them until 1 April 20X9. The customer paid Rs240 million on the 1 April 20X7 rather than paying Rs300 million when the machine is transferred over to them. The interest rate implicit in the contract is 11.8% in order to adjust for the risk involved in the delay in payment. However, Total Printing's incremental borrowing rate is 5%. I have recognised the amount received within revenue. C. Construction of printing machine On 1 April 20X7, TP entered in to a contract to construct a printing machine on a customer's premises for a promised consideration of Rs1,500 million with a bonus of Rs100 million if the machine is completed within 24 months. The estimated expected costs would be Rs800 million and the bonus was estimated not to be payable. The contract specifies that control of the machine is transferred to the customer as the asset is constructed. At 28 February 20X8, on a cost incurred basis the contract is 65% complete and TP has recognised revenue and costs on that basis. However, on 4 March 20X8, the contract is modified with the result that the fixed consideration and expected costs increase by Rs110 million and Rs60 million respectively. The time allowable for achieving the bonus is extended by six months. I have also been told that as a result of the time extension