Sujata Butter Chicken Incorporation operates under IFRS with a tax rate of 25%. The following is the information provided in the ledger accounts at the year-end of 2016: Sales Revenue Costs of Goods (Chicken) Sold Salaries Expense Rental Expense Advertising Expense Selling Expense Investment Revenue Finance Costs Other Operating Expense $3,500,000 1,800,000 750,000 200,000 140,000 60,000 150,000 250,000 100,000 The following is additional information: 1. The company decided to use the revaluation model for land. The original cost of land was $100,000. As of year-end of 2014, the market value of the land was at $130,000. The market value of the land was at $138,000 as of the year-end of 2015. The current market value of the land is $134,000. 2. The company has some equity investment in Google and classified the investment as available- for-sale. The investment was purchased in 2015 with an acquisition cost of $100,000. The market value of the investment went up to $170,000 at the year-end of 2015 and back down to $110,000 at the end of the current fiscal year. Office equipment was purchased with an acquisition cost of $2,000,000. The useful life is expected to be 8 years and no depreciation has been recorded for the current year. The company uses straight-line depreciation. Salaries expense is allocated to "distribution" and "administration" a ratio of 2:1. Rental expense is allocated to distribution warehouse of $120,000 and administrative office of $80,000. Office equipment is used solely for administration. 3. 4. 5. Some chicken meat has become rotten because one of the staff forgot to put the meat in the fridge. The loss is considered normal for the operation and it amounted to $10,000. Required Complete the comprehensive income statement for the firm for 2016 (by functions of expense and separating operating and non-operating items) Sujata Butter Chicken Incorporation operates under IFRS with a tax rate of 25%. The following is the information provided in the ledger accounts at the year-end of 2016: Sales Revenue Costs of Goods (Chicken) Sold Salaries Expense Rental Expense Advertising Expense Selling Expense Investment Revenue Finance Costs Other Operating Expense $3,500,000 1,800,000 750,000 200,000 140,000 60,000 150,000 250,000 100,000 The following is additional information: 1. The company decided to use the revaluation model for land. The original cost of land was $100,000. As of year-end of 2014, the market value of the land was at $130,000. The market value of the land was at $138,000 as of the year-end of 2015. The current market value of the land is $134,000. 2. The company has some equity investment in Google and classified the investment as available- for-sale. The investment was purchased in 2015 with an acquisition cost of $100,000. The market value of the investment went up to $170,000 at the year-end of 2015 and back down to $110,000 at the end of the current fiscal year. Office equipment was purchased with an acquisition cost of $2,000,000. The useful life is expected to be 8 years and no depreciation has been recorded for the current year. The company uses straight-line depreciation. Salaries expense is allocated to "distribution" and "administration" a ratio of 2:1. Rental expense is allocated to distribution warehouse of $120,000 and administrative office of $80,000. Office equipment is used solely for administration. 3. 4. 5. Some chicken meat has become rotten because one of the staff forgot to put the meat in the fridge. The loss is considered normal for the operation and it amounted to $10,000. Required Complete the comprehensive income statement for the firm for 2016 (by functions of expense and separating operating and non-operating items)
