Question 2 (17 marks) ABC Limited is a public listed company dealing with fast moving consumer goods. The authorized share capital consists of 5 000 000 equity shares of no par value of which 1 500 000 shares had already been issued ABC Limited Trial Balance as at 28 February 2020 DEBIT NS CREDIT N$ 2 000 000 625 000 80 000 50 000 4 070 000 640 000 250 000 100 000 550 000 Equity share capital Retained earnings Revaluation surplus Dividend Land and buildings-cost Accumulated depreciation-building Equipment at cost Accumulated depreciation-Equipment Long term loan Inventory Accounts receivable Accounts payable Bank Sales Cost of sales Finance costs Salaries and wages Depreciation Advertising Sales commission Telephone expenses Electricity 129 000 131 000 70 500 65 500 5 250 000 3 750 000 70 000 606 000 130 000 10 000 15 000 13 500 25 500 9 315 500 9 315 500 Additional information: 1. Property, plant and equipment is depreciated using straight line method. The amount for depreciation is to be allocate as follows: (i) Buildings N$ 80 000 and (ii) Equipment N$ 50 000 2. The amount of dividend relates to what was declared and paid during the year. 3. The property is used for all major business operations. The buildings which costs N$ 4 000 000 on 1 March 2019 were valued on 28 February 2020 to fair value of N$ 3 360 000. The office block occupies 60% of the buildings and the rest is occupied by the warehouse. 4. The equipment is shared by both administrative and sales personnel to dispatch documents to third parties. Any expense related thereof should allocated equally between the administrative and sales. 5. Salaries and wages amounting to N$ 321 000 was paid to office staff and the balance to sales department staff. Sales commission relates to an amount paid to sales agents. 6. N$ 7 500 of the telephone expenses was incurred by the sales employees and the remaining amount by the office staff. 7. During the year the business offered 500 000 shares for N$ 800 000. 8. The income tax expense for the year ended 28 February 2020 is N$ 176 610. Required: 1. Prepare the statement of profit or loss and other comprehensive income for the year ended 28 February 2020 according to the function method to comply with the requirement Companies Act 71 of 2008 and IFRS. (17 marks)