Afrideca Ltd supplies building materials to builders and homeowners and is incorporated under the Companies Act of 2008. Afrideca Ltd and all its suppliers are registered VAT vendors and VAT is calculated at a rate of 15%.

The company makes use of the perpetual inventory system. The following statement of profit or loss for the reporting period ended 31 December 2018 was prepared by the junior accountant, Angela who was uncertain about how to recognize and present some of the transactions.

	N$
Revenue	10 720 000
Cost of sales	(4 305 000)
Gross profit	6 415 000
Other Income	1 725 000
Distribution costs
Administration expenses	(4 650 000)
Other costs
Profit for the year	3 490 000

ADDITIONAL INFORMATION:

With the exception of the discrepancies and omissions identified below, the information as stated in the statement of profit or loss above is correct.

1. The following amounts (accurately calculated) have been included in the line item Distribution, Administration and Other costs above:

• Inventory loss due to theft - N$105 000
• Income tax expense - N$980 000
• Interest income on deposit - N$85 000
• Employee benefit costs - N$2 020 000

2. The following transactions are yet to be recognised in the records of Afrideca Ltd:

2.1. Afrideca Ltd received a dividend payout of N$840 000 from Brikz (Pty) Ltd. Afrideca Ltd owns 55% of the shares in Brickz (Pty) Ltd.

2.2. An inspection of the building supplies warehouse on 31 December 2018 revealed that inventory with a cost of N$2 320 000 has a net realisable value of N$2 030 000.

2.3. A delivery vehicle with a cost of N$750 000, accumulated depreciation of N$450 000 and accumulated impairment of N$35 000 was stolen on 1 November 2018. The depreciation and impairment were correctly calculated and recognised up to 1 November 2018. InsureIT Ltd, the insurance company paid out N$262 200 on 29 December 2018.

3. Management fees of N$805 000 (VAT inclusive) were received from Jump (Pty) Ltd during the reporting period.

Below find the draft Statement of Profit or Loss prepared by the junior accountant for Afrideca Ltd for the reporting period ended 31 December 2018:

Afrideca Ltd

Statement of profit or loss for the financial year ended 31 December 2018

	N$
Revenue	10 720 000
Cost of sales	(X)
Gross profit	?
Other Income	(Y)
Income from subsidiaries	(Z)
Income from other financial investments	85 000
Distribution costs
Administration expenses (4 650 000 - 105 000 980 000 85 000 +	(3 745 000)
Other costs 265 000)
Finance costs	(191 430)
Profit before tax	5 758 718
Income tax expense	(980 000)
Profit for the year	4 778 718

Indicate the amount that represents Other Income (Y)? (2 marks)