QUESTION 1 (15 Marks)

The following information relates to Hardin Limiteds year-ended 31 December 2020:

The statement of comprehensive income shows profit for the year of R154 000. The calculation of this profit included the following income and expenses: Impairment of building: R64 000 (before tax: R74 000) Profit on sale of plant: R23 200 (before tax: R32 000) Inventory write-down: R10 000 (before tax: R15 000) The statement of changes in equity reflected preference dividends of R3 450. 12 000 shares in issue throughout the year.

Required: Calculate the basic earnings and the headline earnings and disclose the headline earnings per share for the year-ended 31 December 2020 Q