3. As of December 31, 2011, Taesan Co., Ltd.'s financial statement and the 2012 transaction has basic information are as follows.

Financial statements

As of December 31, 2011

< Assets >
Cash 400,000	Provision for retirement benefits 100,000
Sales debt 50,000
	Basic capital 200,000
	Capital surplus
	Stock issue surcharge 1000,000
	Retained earnings 50,000
Assets total 450,000	Debt and capital total 450,000

Date	Transaction history for 2012
Basic information	Taesan Co., Ltd. was established on January 1, 2011. As of December 31, 2011, the number of shares issued is 200 shares and the face value per share is 1,000 won.
Basic information	Taesan Corporation operates a retirement allowance system and does not utilize retirement pension plans.
3/1	Ten shares of Hwasung's common stock were acquired from the stock market at a market price (fair value) of 50,000 won and paid in cash. The stock is acquired for trading purposes and is accounted for by applying the FVPL model.
5/1	One production machine was purchased and installed. In this regard, 100,000 won was paid in cash to the purchaser, and an additional 20,000 won was paid for transportation to the installation site and 10,000 won for installation. The service life of the machinery is estimated to be four years, and the remaining value is estimated at 10,000 won. The depreciation method applies the straight-line method.
6/1	It acquired 40 shares of treasury stock and paid 32,000 won in cash to the shareholders in return.
7/1	Some of the employees left the company and paid 30,000 won in cash as severance pay.
9/1	Of the acquired treasury shares, 10 shares were resold to new shareholders to receive a total of 10,000 won.
9/30	In order to repair and replace consumable parts related to machinery purchased and installed, cash payment was 4,000 won.
10/5	The remaining 30 stocks were completely incinerated.
11/1	6,000 won was paid in cash as a one-year salary for employees.
12/31	The fair value of Hwasung's common stock acquired by 3/3 was 8,000 won per share.
12/31	As of the end of the year, the estimated retirement allowance is expected to be paid when all employees retire.

• Question:

1. Please refer to the above data to present the accounting treatment that Taesan Corporation will perform in 2012
2. Please prepare Taesan's financial statement for December 31, 2012.