Question 1: Recognition and Depreciation

On 31 December 2020, Sunshine Ltd has the following records of acquisition on its property, plant and equipment:

Acquisitions for 2019:

No Property, Plant & Equipment Date of Purchase Total Cost ($) Scrap Value ($)

1 Motor Vehicle I 1 January 2019 110,000 10,000

2 Motor Vehicle II 3 April 2019 150,000 30,000

3 Motor Vehicle III 4 July 2019 200,000 20,000

4 Machinery I 3 July 2019 180,000 30,000

5 Land I 1 October 2019 300,000 -

6 Office Equipment I 30 December 2019 80,000 8,000

Acquisitions for 2020:

No Property, Plant & Equipment Date of Purchase Total Cost ($) Scrap Value ($)

1 Office Equipment II 1 February 2020 60,000 5,000

2 Motor Vehicle IV 3 Mac 2020 75,000 5,000

3 Machinery II 14 July 2020 90,000 4,000

4 Machinery III 16 July 2020 80,000 10,000

5 Office Equipment I 30 November 2020 40,000 3,000

The policies on PPE:

1. Except for land, all types of Property, Plant & Equipment are depreciated using straight line method.
2. All motor vehicles have an expected useful life of 10 years. Whereas, the machinery and office equipment have and expected useful life of 8 years.
3. The depreciation is calculated and provided on monthly basis. No depreciation will be provided if the ownership is less than or equal to 15 days in any of the month.

Required:

a. the extract statement of comprehensive income for the year ended 31 December 2019 and 2020.

b. the extract of statement of financial position as at 2019 and 2020