4G 9:10 AM OM 76 (11 Question 4 marks) Discuss (Using Australian accounting standard) If a decision is made to abandon an area of interest, how should any pre-production costs in respect of that area be treated? Explain, what costs should be included in the cost of inventory of an entity involved in the extractive industries. ANSWER: Question 5 (7 marks) Pearson Ltd is an Australian listed company. Its results for the financial year ending 30 June 2023 have exceeded expectations-profit before tax is $11.194 million and income tax expense is $2.216 million. As at 30 June 2022, there were 11.700 million ordinary shares on issue. On 11 May 2023, 4.225 million further ordinary shares were issued at a price of $2.99-paid to $2.4. The partly paid shares carry rights to dividends in proportion to the amount paid relative to the total issue price. Required: Calculate the basic EPS for Pearson Ltd for the year ending 30 June 2023