1. Port Enterprise Limited (PEL) issued $6,000,000 convertible debentures at January 1, 2019. The debentures have a four-year term, and interest is payable annually in arrears at a nominal annual interest rate of 10% percent. When the debentures were issued, the prevailing market interest rate for similar debt without conversion options was 13 %.

The following discount rates are available:

End of year	PVIFA 10%	PVIFA 13%
Year 1	0.9091	0.8850
Year 2	0.8264	0.7831
Year 3	0.7513	0.6931
year 4	0.6830	0.6133

Required:

In relation to the convertible debentures disclosed above, prepare extracts of the entity’s statement of profit or loss and statement of financial position for the year ended December 31, 2012.