The following trial balance was extracted from the books of Old NV on 31 December 20X1. 000 000 Sales 12,050 Returns outwards 313 Provision for depreciation Plant 738 Vehicles 375 Rent receivable 100 Trade payables 738 Debentures 250 Issued share capital ordinary 1 shares 3,125 Issued share capital preference shares (treated as equity) 625 Share premium 350 Retained earnings 875 Inventory 825 Purchases 6,263 Returns inwards 350 Carriage inwards 13 Carriage outwards 125 Salesmens salaries 800 Administrative wages and salaries 738 Land 100 Plant (includes 362,000 acquired in 20X1) 1,562 Motor vehicles 1,125 Goodwill 1,062 Distribution costs 290 Administrative expenses 286 Directors remuneration 375 Trade receivables 3,875 Cash at bank and in hand 1,750 19,539 19,539 Note of information not taken into the trial balance data: (a) Provide for: (i) An audit fee of 38,000. (ii) Depreciation of plant at 20% straight-line. (iii) Depreciation of vehicles at 25% reducing balance. (iv) The goodwill suffered an impairment in the year of 177,000. (v) Income tax of 562,000. (vi) Debenture interest of 25,000. (b) Closing inventory was valued at 1,125,000 at the lower of cost and net realisable value. (c) Administrative expenses were prepaid by 12,000. (d) Land was to be revalued by 50,000. M03 Financial Accounting and Repor 55996.indd 60 23/04/2019 12:02 Preparation of financial statements of comprehensive income, changes in equity and financial position 61 Required: (a) Prepare a statement of income for internal use for the year ended 31 December 20X1. (b) Prepare a statement of comprehensive income for the year ended 31 December 20X1 and a statement of financial position as at that date in Format 1 style of presentation.