ABC, a limited liability company, has the following trial balance at 31 December 20x9. Debit Credit $'000 $'000 Cash at bank 100 Inventory at 1 January 20x9 2,400 Administrative expenses 2,206 Distribution costs 650 Non-current assets at cost: Buildings 10,000 Plant and equipment 1,400 Motor vehicles 320 Suspense 1,500 Accumulated depreciation: Buildings 4,000 Plant and equipment 480 Motor vehicles 120 Retained earnings 560 Trade receivables 876 Purchases 4,200 Dividend paid 200 Sales revenue 11,752 Sales tax payable 1,390 Trade payables 1,050 Share premium 500 $1 ordinary shares 1,000 22352 22352 The following additional information is relevant. (a) Inventory at 31 December 20x9 was valued at $1,600,000. While doing the inventory count, errors in the previous year's inventory count were discovered. The inventory brought forward at the beginning of the year should have been $2.2m, not $2.4m as above. (b) Depreciation is to be provided as follows: (1) Buildings at 5% straight line, charged to administrative expenses. (ii) Plant and equipment at 20% on the reducing balance basis, charged to cost of sales. (ii) Motor vehicles at 25% on the reducing balance basis, charged to distribution costs. (c) No final dividend is being proposed. (d) A customer has gone bankrupt owing $76,000. This debt is not expected to be recovered and an adjustment should be made. An allowance for receivables of 5% is to be set up. (e) 1 million new ordinary shares were issued at $1.50 on 1 December 20X9. The proceeds have been left in a suspense account. Required Prepare the income statement for the year to 31 December 20x9, in accordance with the requirements of International Financial Accounting Reporting Standards. Ignore Taxation