The following information is available for Halogen Limited:

Draft Statement of Profit or Loss and Other Comprehensive Income (Extract) for the Year Ended 31 December 2017

Draft Statement of Changes in Equity (Extract) for the Year Ended 31 December 2017

Additional Information 1. Property X was revalued for the first time in 2017.
2. The company is entirely equity-financed, as follows:

3. Retained earnings were €90,000 at 1 January 2017.
4. Just before the year-end, the company sold some land at a profit of €70,000. This profit is not reflected in the draft profit figure above. The tax charge associated with this profit is €30,000 and this also 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.
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