prepare income statment and balance sheet only

Impairment of assets The following trial bistance relates to Hume at 30 June 2017: 300.000 210.500 8.800 12.700 3,600 150,000 38.400 175 200 Revenue Cost of sales Distribution costs Administration expenses Loan interest paid Property-cost Property-depreciation af 1 July 20X6 Plant and equipment -cost Plant and equipment-depreciation at 1 ay 2006 Tradecvables Inventory - 30 June 20X7 Bank Trade payables Ordinary shares $1 Share premium 12 % Loan noted 1 July 20X5) Taxation Retained earrings at 1 y 2016 48,600 31.600 18.100 1.950 25.400 50.000 9,000 40,000 1.300 11.450 $12.50 612.850 The following notes are relevant 1 Property includes and at a cost of $30,000. The building is being deprecated on a straight-line basis overestimated telute of 25 years 2 Plant and equipment is being deprecated on the reducing balance basis at a rate of 20% per annum The balance on plant and equipment included a piece of special machinery that cost $70,000 on 1 July 2005 On 30 June 20X7a forklin truck reversed into the machinery causing severe damage Hume has identified two posible options Sell the machine A potential buyer has been located, who has indicated that she would pay 80% of the carrying amount at 30 June 20x7 However, she has insisted that the machine is repaired before the buys it. The repair work will be done by Hume's employees and will take about 120 hours of skilled labour, the associated cost with this labour is 52.100 In addition Hume will have to deliver the machine to the buyer at a cost of $2,100 and there will be a single premium Insurance cost of 5550 for the journey (1) Repair the machine and continue to use it The financial controller has estimated that the present value of cash flow generated from future use (including the repair cost) amount to $35.000 All depreciation is charged to cost of sales 5 The directors have estimated the provision for income tax for the year to 30 June 20X7 at 56,500 Required: Prepare the statement of profit or loss for Hume for the year to 30 June 20X7 and a statement of financial position at that date