*15.8 calculate (b) Re-work this exercise using the l The following trial balance extracts relate to Moston as at 30 June 2020: Revenue (note 1) Cost of sales Research and development costs (note 2) Distribution costs Administrative expenses (note 4) Loan stock interest and dividend paid (notes 4 and 7) Investment income Ordinary shares of 1 each (note 7) 5% Loan stock (note 4) Retained earnings at 1 July 2019 Revaluation surplus at 1 July 2019 Other components of equity (note 7) Property at valuation 1 July 2019 (note 3) Plant and equipment, at cost (note 3) .000 000 113,500 88,500 7,800 3,600 6,800 5,000 300 30,000 20,000 6,200 3,000 9,300 28,500 27,100 9,100 8,800 248 Accumulated dep'n plant and equipment at 1 July 2019 Investments at fair value 1 July 2019 (note 5) The following notes are relevant: 1. 2. 3. Revenue includes a 3 million sale (made on 1 January 2020) of maturing goods. The carrying amount of these goods at the date of sale was 2 million. Moston is still in possession of the goods (but they have not been included in inventory) and has an option to repurchase them at any time in the next three years. In three years' time the goods are expected to be worth 5 million. The repurchase price will be the original selling price plus interest at 10% per annum from the date of sale to the date of repurchase. Moston commenced a research and development project on 1 January 2020. It spent 1 million per month on research until 31 March 2020, at which date the project passed into the development stage. From this date it spent 1.6 million per month until the year end (30 June 2020), at which date development was completed. However, it was not until 1 May 2020 that the directors of Moston were confident that the new product would be a commercial success. and development costs should be charged to cost of sales. Expensed research Moston's property is carried at fair value, which at 30 June 2020 was 29 million. The remaining life of the property at the beginning of the year (1 July 2019) was 15 years. Moston does not make an annual transfer to retained earnings in respect of the revaluation surplus. Ignore deferred tax on the revaluation.