A new limited liability company called 'Martin Ltd' commenced life on 1st January in Year 1, which has just been completed. On that very first day of January in Year 1, it issued 150,000 ordinary shares with a nominal value of 1.00 each at a premium of 0.50 each. It also obtained a five-year bank loan of 120,000 at an annual interest rate of 15% when it started business. During Year 1, the following occurred: 1.At the start of Year 1, equipment had been purchased for 60,000, to be used for four years.Martin Ltd's chosen depreciation policy is the reducing balance approach (also known as thedeclining balance approach) using an annual percentage rate equivalent to twice the straight-line percentage rate. 2.In January Year 1, 45,000 was spent on rent of buildings for fifteen months. 3.Inventories totalling 130,000 were purchased on credit during the year. At the end of theyear, 75,000 was owing to trade payables. 4.Various other administration expenses amounted to 1,600 each month, paid with onemonth's delay. 5.Wages and salaries totalled 60,000 and were all paid during the year. 6.65% of inventories were sold on credit and generated total revenue of 645,000, but during the year a debtor owing