Additional information One of the equipments costing 300,000 acquired on January 1, 2004 was damaged at the end of 2008, if the company &clinic decides to sell this equipment it will receive a price of 140,000, to sell the equipment the company should pay 1000 as a transportation fee. If the company clinic decides to keep the machine (equipment), the present value of future cash flows generated by the machine are 130,000. 1. Depreciation expenses related to the year 2008. Buildings and equipments are depreciated using the straight line method over 10 years. 2. Depreciation and impairment are charged to Administration expenses. Requirement From the information above, prepare the Income Statement for XClinic Company for the year ended 31 December 20X8, and a statement of financial position at that date. XClinic company was set up 5 years ago to provide services to its customers. The trial balance of the XClinic as at 31 December 2008 is as follows: Revenue Debit Credit 1,000,000 Cost of sales 570,000 Administration expenses. 20,000 Land 300,000 Buildings 550,000 Buildings-Accumulated depreciation-at 220,000 1st January 2008 Equipment Equipment- Accumulated depreciation- 800,000 320,000 at 1st January 2008 Trade receivables 100,000 Inventory-at 31 December 2008 200,000 Bank 100,000 Trade payables 400,000 Ordinary shares $1(capital) Retained earnings at 1st January 2008 600,000 100,000 2,640,000 2,640,000