1. Accounting under Ideal Conditions: PV Ltd. reports the following balance sheet at the end of year 1 using current value accounting. At the end of year 2, actual cash received is $200 ($300 was expected), as a result of a bad state realizing. The interest rate is 10%. a) Prepare the income statement and balance sheet at the end of year 2 using current value accounting. P.V. Ltd Balance Sheet As at End of Year 1 Financial Asset Cash $ 300.00 Shareholders' Equity Opening value $ 520.66 Net Income 52.07 Capital Asset Present value 272.73 $ 572.73 $ 572.73 1. Accounting under Ideal Conditions: PV Ltd. reports the following balance sheet at the end of year 1 using current value accounting. At the end of year 2, actual cash received is $200 ($300 was expected), as a result of a bad state realizing. The interest rate is 10%. a) Prepare the income statement and balance sheet at the end of year 2 using current value accounting. P.V. Ltd Balance Sheet As at End of Year 1 Financial Asset Cash $ 300.00 Shareholders' Equity Opening value $ 520.66 Net Income 52.07 Capital Asset Present value 272.73 $ 572.73 $ 572.73