X Ltd. is engaged in the construction industry and prepares its financial statements up to 31st March each year. (i) On 1st April, 20X1, X Ltd.…

X Ltd. is engaged in the construction industry and prepares its financial statements up to 31st March each year. (i) On 1st April, 20X1, X Ltd. purchased a large property (consisting of land) for 2,00,00,000 and immediately began to lease the property to Y Ltd. on an operating lease. Annual rentals were - 20,00,000. On 31st March, 20X5, the fair value of the property was - 2,60,00,000. Under the terms of the lease, Y Ltd. was able to cancel the lease by giving six months' notice in writing to X Ltd. Y Ltd. gave this notice on 31st March, 20X5 and vacated the property on 30th September, 20X5. On 30th September, 20X5, the fair value of the property was - 2,90,00,000. On 1st October, 20X5, X Ltd. immediately began to convert the property into ten separate flats of equal size which X Ltd. intended to sell in the ordinary course of its business. X Ltd. spent a total of 60,00,000 on this conversion project between 30th September, 20X5 to 31st March, 20X6. The project was incomplete at 31st March, 20X6 and the directors of X Ltd. estimate that they need to spend a further - 40,00,000 to complete the project, after which each flat could be sold for 50,00,000. (ii) Mr. A is a domestic partner of Ms. B. Mr. A has an investment in X Limited and Ms. B has an investment in Z Limited. Analyze the transactions mentioned above and choose the most appropriate option in the below questions 4 to 8 in line with relevant Ind AS: