ACC3209 (F) / Page 4 of 7 Section B Choose only 2 (TWO) questions. Question 3 Part A a a Shopper is a small manufacturing company specializing in making alloy casting. Its main item of plant is a furnace which was purchased on 1 October x9. The furnace has two components: the main body (cost $120,000 including the environmental provision - see below) which has a ten years life and a replaceable liner (cost RM12,000) with a six years life. The manufacturing process produces toxic chemicals which pollute the nearby environment. Legislation requires that a clean-up operation must be undertaken by Shopper on 30 September x19 at the latest Shopper received a government grant of $10,000 relating to the cost of the main body of the furnace only. The following are extracts from Shower's statement of financial position as at 30 September xll (two years after the acquisition of the furnace): Carrying amount $ Non-current Asset Furnace : Main body 96,000 Replaceable liner 8,000 Current liabilities Government grant 1,000 Non-current liabilities Government grant 7,000 Environmental provision 20,000 (present value discounted at 6% p.a. Required: i. Prepare equivalent extracts from Shopper's statement of financial position as at 30 September x12 ii. Prepare extracts from Shopper's statement of profit or loss for the year ended 30 September 12 relating to the items in the statement of financial position. (18 marks)