Prepare a statement of other comprehensive income for river

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Reference no: EM132960986

Additional Information:

1. Inventory was valued at £19,500 on 31 December 2020.
2. Premises consist of land costing £375,000 and buildings costing £300,000. The buildings have an expected useful life of 50 years.
3. Plant includes an item purchased during the year at a cost of £105,000. A government grant of £45,000 was received in respect of this purchase. These were the only transactions involving non-current assets during the year. Depreciation of plant is to be charged at 10 per cent per annum on a straight-line basis.
4. The balance on the tax account is an under-provision for tax brought forward from the year ended 31 December 2019.
5. The directors have estimated that tax of £85,500 will be due on the profits for this year.

Requirement

Problem 1: Prepare a statement of profit or loss and other comprehensive income for River Limited for the year ended 31 December 2020 and a statement of financial position as at that date.

Reference no: EM132960986

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