You're acting as a financial reporting consultant for a client called Parkway who operates a chain of cinemas. Parkway's year end is 31 December 2021 and they have sent you the following email asking for advice. Hello, I need your help with some issues which have arisen I need your advice on. EPS Our profit after tax the year was 2,600,000, we have had a number of various share issues in the year, so calculating Earnings Per Share (EPS) is a little complicated. We started the year with 1,000,000 ordinary shares. On 1st March 2021 we made a normal share issue of 500,000 shares at 2.00 each. On 1 October 2021 we made a 1 for 5 rights issue at 1.50 per share, when the prevailing market rate was 1.80 per share. Our unadjusted EPS last year was 145.6pence. Can you calculate our EPS and adjusted prior year EPS? Lease of a new cinema On 1 January 2021 we entered into an 8 year lease for a new cinema. We paid a deposit of 150,000. There will be subsequent annual rental of 80,000 payable in arrears on the 31st December each year. We expect to use the cinema for the full 8 years. Legal fees of 15,000 were incurred in securing this lease and marketing campaign to launch this new cinema has cost 10,000 On 1st January 2021 the present value of the future lease payments (excluding deposits or initial payments) is 426,794 based on an effective rate of interest of 10%. We're unsure of the initial and subsequent accounting treatment. Closure of Scottish Operations In addition we have decided to close down our Scottish operations in September 2021 which previously would contribute a significant profit after tax of 100,000 per year. How should this be accounted for and how would this treatment differ under UKGAAP? Requirement: a) Reply to the email from the client, providing an explanation of the accounting and reporting treatment and where relevant any calculations required.