The following information is available for Halogen Limited:

Draft Statement of comprehensive income (Extract) for the Year Ended 31 December 1996

4. Just before the year end, the company sold some land at a profit of €70,000. This profit was not reflected in the draft profit figure above. The tax charge associated with this profit is €30,000 and this has not been included in the draft taxation charge shown above.
5. A fire in part of the company’s warehouse just before the year end destroyed inventory worth €50,000. No adjustment has been made to reflect this fact in the draft profit figure. \ ia 6. Taxation is at a rate of 10%.
Requirement:

(a) What profits are statutorily available for distribution? What additional restrictions are placed on public limited companies?

(b) What is the maximum distribution that Halogen Limited, as a private limited company, can make?

(c) If Halogen Limited was a public limited company, what would be the maximum distribution it could make?

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Profit before taxation Taxation Profit after taxation '000 500 (50) 450 Draft Statement of Changes in Equity (Extract) for the Year Ended 31 December 1996 Note '000 Profit for the financial year (as per draft above) 450 Unrealised surplus on revaluation of Property X (1) 60 Unrealised loss on trade investments (270) 240 Total recognised gains and losses since last annual report Additional Information 1. Property X was revalued for the first time in 1996. 2. The company is entirely equity financed as follows: Share capital (1 ordinary shares) Share premium Capital redemption reserve fund 3. Retained profits were 90,000 at 1 January 1996. '000 200 50 40