On 1 January 2017, Franco Ltd acquired a patent for the right to develop the Excavator. Further research and development costs on the new project shown below.

Laboratory plant and equipment $4 000 000 Cost of patent and registration 3 000 000 Development costs 5 000 000

Labour 2 000 000

Overheads 2 500 000

R & D on the Excavator was commissioned on 1 January 2019, at a cost of $10 million. It is expected that the machine will have a useful life of 10 years.

Other operations costs and revenue for the year ended 30 June 2019 are summarized below.

Company workers wages $1 000 000

Sales revenue $35 000 000

Interest Revenue 3 500 000

Dividend Income 4 500 000

Production costs (excluding research and development costs) 10 000 000

Dividends paid on 1 April 2016 were $850 000.

Administrative expenses 500 000

Selling expenses 700 000 Advertising 300 000

On 1 January 2016, the company revalued its buildings by $450 000. Income tax expense for the year calculated at 25%.

Number of machines produced 20 000 Number of machines sold 15 000

Required

Prepare a Statement of Comprehensive Income for the year ended 30 June 2019 in accordance with relevant accounting standards. Include Note(s) and/or disclosure requirements (if any). Show all calculations. Please refer to and acknowledge use of AASB101, AASB138 & AASB108.

Please use the template shown below:

Name?

Statement of Comprehensive Income for the year ended ?

$ $

Sales revenue

less Cost of goods sold

Gross profit

less Expenses

Profit before income tax Income tax expense Profit for the period

Other comprehensive income Total comprehensive income