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a. Kojo Boyle incurs the following costs up to 31 December 2019 in relation to the construction of a new factory and the introduction of its products to the local market. GH¢'000 Site preparation costs 240 Materials used 1,500 Labour costs, including GH¢90,000 incurred during an industrial dispute. No construction occurred during the period of the dispute. 3,190 Testing of various processes in factory 150 Consultancy fees re installation of equipment 220 Relocation of staff to new factory 110 General overheads 500 Costs to dismantle the factory at end of its useful life in 10 years time 100 Required: Determine how much of the costs should be capitalised on 31 December 2019. Calculate the amounts recognised in profit or loss and in other comprehensive income for the years ended 31 December 2021 (10 marks) b. Bengali Company Ltd had two loans in existence in the year before it commenced construction of a qualifying asset. The details of the loans are: 1st January 2020 31st December 2020 GH¢ 'million GH? million 12% bank loan repayable in 2023 500 500 9% bank loan repayable in 2024 750 750 Page 6 of 13 The two loan notes were originally generally obtained but partly applied to the construction of a qualifying asset. Construction works began on 1st April 2020 with expenditure of GH¢180 million and GH¢70 million drawn down for the construction on 1st April 2020 and 1st November 2020 respectively, from existing loans. Construction works were completed on 31st December 2020. Required: Explain and quantify how the borrowing costs on the loans and the qualifying asset ought to be accounted for by Bengali Company Ltd for the year ended 31st December 2020 in accordance with IAS 23 'Borrowing costs'. (10 marks)