Straits Liners is a shipping company which at 1 January 2014 owned the following vessels:

 The Invisible, bought for £450,000 on 1 July 2009

 The Submersible, bought for £600,000 on 1 August 2010

 The Outrageous, bought for £900,000 on 1 March 2011 All the ships are depreciated over five years on the straight line basis, assuming a residual value of 25% of cost price, with a full year’s depreciation in the year of purchase but no depreciation in the year of sale. During the year ended 31 December 2014, the following events occurred:

 The Invisible disappeared in the Bermuda Triangle and was considered lost.

 The Submersible was part-exchanged for a new ship, The Implausible, on 3 October.

The cost of the new ship was £700,000. £200,000 was given in part exchange, with the balance paid by bank transfer.

 The Outrageous was still owned at 31 December 2014.

Show all the relevant entries in the income statement for the year ended 31 December 2014 and in the statement of financial position as at that date. Show all workings.