The ledger of Elena’s Crystals Ltd at 30 June 2020 contained the following information.

(The finance expenses included $12 000 interest expense.)

Assume a tax rate of 30%. You discover the following additional information, not reflected in the figures.

1. No tax expense has yet been accounted for. Donations received are tax exempt.

2. One division of business for the company had been discontinued on 1 June 2020. The assets associated with this division were sold for $1 000 000, at a loss of $75 000 before income tax.

3. On 6 January 2020, certain items of company property were resumed by the government for upgrading of the interstate highway, which ran past the company’s warehouse. The government paid sufficient compensation for the company to realise a $100 000 before-tax profit on the deal.

Required

(a) Prepare a statement of profit or loss and other comprehensive income for the year ended 30 June 2020 to comply with the requirements of IAS 1/AASB 101.

(b) Prepare an appropriate note for income in order to comply with accounting standards.

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Sales revenue Gain on revaluation of building (not sold) Interest revenue Donations received Cost of sales Selling and distribution expenses Administrative expenses Finance expenses $1500000 50 000 55 000 30000 650 000 120000 150000 30000