Scott and Tara Millens are the joint owners of Snowy Ski Lodge, which is located in the Victorian Alps. The lodge provides accommodation, ski hire and meals. For the year ended 30 June 2024, Scott and Tara determined the following financial information for their business.

A real estate agent valued the buildings at $2 000 000 on 30 June 2024.
Required

(a) Prepare a statement of financial performance for Snowy Ski Lodge for the year ended 30 June 2024.

(b) Prepare a statement of financial position for the business as at 30 June 2024.

(c) Explain why you have used a particular valuation for the buildings in the statement of financial position.

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Cash on hand $28 000 Building 1 820 000 Accounts payable Accounts receivable $87 000 8 000 Income accommodation and meals 2 500 000 Income ski hire 485 000 Salaries and wages 420 000 Supplies on hand 45 000 Supplies used 158 000 Other expenses 63 000 Equipment purchased 27 000