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Tonson Plc had acquired a machine on 1 January 2020 at a cost of 100,000 with an estimated useful economic life of ten years. The

Tonson Plc had acquired a machine on 1 January 2020 at a cost of 100,000 with an estimated useful economic life of ten years. The fair value of the machine is 52,000 and the selling costs are 4,000. The expected future cash flows are 10,000 per annum for the next five years. The current cost of capital is 10%. An annuity factor for this rate over this period is 3.791.

Required: Prepare extracts from the financial statement for the year-ended 31 december 2020.

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