M Ltd. is engaged in production and agricultural activities. It also runs a chain of gyms. M Ltd. prepares its financial statements following Indian…

M Ltd. is engaged in production and agricultural activities. It also runs a chain of gyms. M Ltd. prepares its financial statements following Indian Accounting Standards and follows April-March as its financial year. During the year 20X1-20X2, the company has faced following issues and for their solution seeks your professional advice: (i) Fixed production overheads for the financial year is 10,000. Normal expected production for the year, after considering planned maintenance, normal breakdown and also considering the future demand of the product is 2,000 MT. It is considered that there are no quarterly / seasonal variations. Therefore, the normal expected production for each quarter is 500 MT and the fixed production overheads for the quarter are - 2,500. Actual production achieved Quantity (In MT) First quarter 400 Second quarter 600 Third quarter 500 Fourth quarter 400 Total 1,900 There are no quarterly / seasonal variation. (ii) On 1st April, 20X1, M Ltd. sells gym memberships for 7,500 per member for 1st year to 100 customers, with an option to renew at a discount in 2nd and 3rd year at 6,000 per year. M Ltd. estimates an annual attrition rate of 50% each year. (iii) On 1st November, 20X1, M Ltd. purchased 100 goats of special breed from a market for 10,00,000 with a transaction cost of 2%. Goats fair value decreased from 10,00,000 to 9,00,000 as on 31st March, 20X2. Analyze the transactions mentioned above and choose the most appropriate option in the below questions 1 to 5 in line with relevant Ind AS: