Scrubber Enterprise Ltd is a private company that the directors are considering to have listed on the Jamaican Stock Exchange soon. Below is the entitys trial balance for December 31, 2019: Cash and bank 9,500,000 Land at cost 140,000,000 Building at cost 50,000,000 Plant and machinery at cost 20,000,000 Accumulated depreciation of building 5,000,000 Accumulated depreciation of plant and machinery 10,000,000 Trade receivables 38,000,000 Provision for bad debts 1,500,000 Trade payables 13,500,000 10% Redeemable preference share capital 100,000,000 Ordinary share capital @ $1 100,000,000 Share premium 50,000,000 Lease (iii) 5,000,000 Legal fees (iii) 500,000 Deferred tax liability 20,000,000 Revenues 600,000,000 Inventories 50,000,000 Administrative expenses 350,000,000 Distribution costs 200,000,000 Prior period tax underprovision 30,000,000 Retained earnings 7,000,000 900,000,000 900,000,000 The following information below is also relevant to the entity: i. A revaluation of land took place on December 31, 2019, which stated that the land had a fair value of $150 million on that date. The effect of the revaluation has not been included in the accumulated temporary differences noted below. ii. Building is depreciated straight line over 50 years and depreciation charges are split equally between administrative expenses and cost of sales. Building is to be revalued to $60 million as at December 31, 2019. The effect of the revaluation has not been included in the accumulated temporary differences noted below. iii. The entity leased a machine on January 1, 2019 for four years. The annual lease payments, which are made in arrears, amount to $5 million. The implicit rate in the lease is currently 8%, while the incremental borrowing rate is at 11%. The leased asset is to be depreciated over four years on a straight line basis. The relevant depreciation expense is to be charged equally between administrative expenses and distribution costs. The legal fees recorded relate to initiating the lease agreement. iv. Plant and machinery is to be depreciated over ten years on the straight line basis and charged equally between distribution costs and administrative expenses. v. Included in cost of sales is a brand which had a cost of $50 million. The brand was bought on June 30, 2019 and should be amortised using a straight line basis over a life of ten years, time apportioned accordingly. Any amortisation should be charged to cost of sales. vi. Included in administrative expenses is cost of sales of $150 million. vii. Dividends on the redeemable preference shares are to be paid on January 2, 2020. Management had not accrued any dividends for the entire period. viii. The year-end provision for bad debt is to be adjusted to 10% of gross receivables. Any adjustments to the provision should be recorded in administrative expenses. ix. Total taxable profits for 2019 amounted to $160 million and the current tax rate is 25%. Accumulated taxable temporary difference as at December 31, 2019 amounted to $120 million. The total taxable temporary difference excluded the effect of revaluations on land and building above. x. The entity sold a defective product and was sued by the customer. On December 30, 2019 the entitys attorney indicated that it is probable that the entity will lose and have to pay $100 million. Settlement is likely to be within the next six months. Any amount provided for should be charged to distribution costs. xi. The entity made a one for five bonus issue on June 30, 2019. xii. The entity declared dividends on ordinary shares of $0.10 on December 29, 2019. Dividends are expected to be paid on January 20, 2020. Required: a. Prepare the statement of profit or loss and comprehensive income for the year ended December 31, 2019. b. Prepare the statement of changes in equity for the year ended December 31, 2019. c. Prepare the statement of financial position as at December 31, 2019.