The accountant for Submarines Ltd has prepared the following preliminary, abbreviated statement of financial position as at 30 June 20X5:

	$M		$M
Property Plant and Equipment	50	Liabilities	60
Other assets	50	Equity	40
Total assets	100	Liabilities and equity	100

Profit before tax is $12 million, which is similar to most years.

There is a significant risk that a major customer of Submarines Ltd will change to a different supplier, resulting in some of the equipment being made redundant. The accountant suggested also recognising an impairment loss of $5 million, that is, writing down assets by ten million dollars.

Which of the following statements are correct?

If the impairment loss is recognised, Submarines Ltd would report

I Total assets of $95 million

II Profit before tax of $17 million

Group of answer choices

Both I and II

I only

Neither I nor II is correct

II only