PART B Newcastle Ltd, has been manufacturing and selling swimming suits for men and women for the last two years. The company commenced its operations on 1 July 2018 by issuing 350 000, $5 shares fully paid. There was no other cost related to the share issue. For the year ending 30 June 2020, the company recorded the following aggregate transactions: Accounts Sales (90 % credit and 10 % cash sales) 6 395 000 Cost of Sales 4 419 000 Interest income 6 000 Rent Revenue 8 000 Gain on sale of plant 22 000 Employee benefit expenses - Admin 100 000 Utilities expenses (1/3 selling & 2/3 admin) 36 000 Depreciation expense- Admin 54 000 Selling & Distribution Expenses 932 000 Insurance expense - Admin 58 000 Doubtful debts expense 7 000 Interest expense 30 000 Other borrowing expenses 12 000 Income tax expense 268 000 The following additional information was noted during the preparation of financial statements for the year ended 30 June 2020: Additional 80 000 @ $5 fully paid shares were issued On 1 July 2019. A cash dividend of $180 000 was declared and paid during the 2020 financial year and a final dividend for 2020 of $75 000 was proposed but not recognised in the financial statements. Inventory was measured at the lower of cost and net realizable value. Buildings, plant and equipment were measured at cost. The benefits were expected to be received evenly over the useful life of the asset. Land was revalued upward by $100 000 (related income tax for this transaction was $30 000). The revaluation gain will not be reclassified and has been recorded in the Land Revaluation Surplus'. The valuation was conducted by the registered valuer, Abbey Valuations Pty Ltd. Financial assets held for trading are equity investments that are held for the purpose of selling and short-term profit taking. $127 000 of other loans are repayable within six months. The remaining amount is payable in full at the end of 2022 $30 000 of bank loans are repayable within one year. The remaining amount is payable in full at the end of 2024. The provision for employee benefits includes $47 000 payable within one year. The warranty provision is in respect of a 12-month warranty given on certain goods sold