Scanne avec CamScann 3 The balance on plant and equipment included a piece of specialist machinery that cost $70,000 on 1 July 20X5. On 30 June 20x7 a fork-lift truck reversed into the machinery causing severe damage. Hume has identified two possible options: (1) 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 she 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 $2,160. 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 $580 for the journey. (ii) Repair the machine and continue to use it The financial controller has estimated that the present value of cash flows generated from future use (including the repair cost) amount to $31,800. All depreciation is charged to cost of sales. The directors have estimated the provision for income tax for the year to 30 June 20x7 at $6,500. 4 5 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