Page 3 (c) Depreciation is to be provided on buildings at a rate of 5% on valuation and on vehicles and machinery at a rate of 10% on cost. The historical cost depreciation for buildings would have been 60,000. Depreciation is to be allocated 20% to cost of goods sold, 50% to administrative expenses and 30% to distribution expenses. (d) Included in freehold land and buildings is land which had cost 300,000, had been revalued in the statement of financial position at 750,000, and was sold in March 2021 for 900,000. The only entries made relating to the sale transaction have been to debit cash and credit the sale of Non- current Asset account with 900,000. (e) A customer has gone into liquidation owing the company 35,000; the company does not expect to recover any of this debt. The allowance against receivables is to be increased to 75,000. (f) Corporation tax for the year of 600,000 is to be provided for. (9) The company has an authorised share capital of 3,000,000 ordinary shares of 1.00 each. During the year the company issued 800,000 ordinary shares at an issue price of 1.50 per share. These are all fully paid and accounted for in the above trial balance. Also during the year the company paid an ordinary dividend of 10p per share in relation to the previous financial year. However, this dividend payment was debited in error to the Distribution expenses account in the above trial balance. The interim dividend of 30,000 has been correctly accounted for in the trial balance above. Required: Insofar as the information permits, prepare Taco plc's Statement of Profit or Loss and Other Comprehensive Income and the Statement of Financial Position as at that date, in accordance with International Financial Reporting Standards making the usual transfers to reserves in line with best practice. (30 marks) Page 3 (c) Depreciation is to be provided on buildings at a rate of 5% on valuation and on vehicles and machinery at a rate of 10% on cost. The historical cost depreciation for buildings would have been 60,000. Depreciation is to be allocated 20% to cost of goods sold, 50% to administrative expenses and 30% to distribution expenses. (d) Included in freehold land and buildings is land which had cost 300,000, had been revalued in the statement of financial position at 750,000, and was sold in March 2021 for 900,000. The only entries made relating to the sale transaction have been to debit cash and credit the sale of Non- current Asset account with 900,000. (e) A customer has gone into liquidation owing the company 35,000; the company does not expect to recover any of this debt. The allowance against receivables is to be increased to 75,000. (f) Corporation tax for the year of 600,000 is to be provided for. (9) The company has an authorised share capital of 3,000,000 ordinary shares of 1.00 each. During the year the company issued 800,000 ordinary shares at an issue price of 1.50 per share. These are all fully paid and accounted for in the above trial balance. Also during the year the company paid an ordinary dividend of 10p per share in relation to the previous financial year. However, this dividend payment was debited in error to the Distribution expenses account in the above trial balance. The interim dividend of 30,000 has been correctly accounted for in the trial balance above. Required: Insofar as the information permits, prepare Taco plc's Statement of Profit or Loss and Other Comprehensive Income and the Statement of Financial Position as at that date, in accordance with International Financial Reporting Standards making the usual transfers to reserves in line with best practice. (30 marks)