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Digital Systems Ltd reported the following for the year: Item Amount () Fair Market Value of assets 800,000 Total Liabilities 350,000 Net Income 90,000 Requirements:

Digital Systems Ltd reported the following for the year:
Item
Amount (£)
Fair Market Value of assets
800,000
Total Liabilities
350,000
Net Income
90,000
Requirements:
Calculate the Return on Equity (ROE) for Digital Systems Ltd.
Discuss the impact of fair market value on the company’s financial statements.
Draft a summarized income statement for the year ended 31 December 2021.

Item	Amount (£)
Fair Market Value of assets	800,000
Total Liabilities	350,000
Net Income	90,000

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