Hello I am trying to get the solution for question 2 as shown below.. The link to the actual question is here: Accounting 2007 U1 P2.pdf (coursehero.com) The AI generated answer appears to be incorrect

A Get solution = Summarize text Paraphrase text Balance Sheet for 2006 Assets Liabilities and equities Cash in hand 3 460 Accounts payable 22 460 Cash at bank 48 600 Unpaid taxes 14 000 Accounts receivable 25 000 Unpaid rent 2006 1 580 Merchandise inventory 120 000 Mortgage payable 200 000 Supplies inventory 4 000 Bonds payable 56 000 Investments 250 000 Capital shares issued 95 000 Property 285 000 Reserves 10 78 800 Plant and equipment 160 000 Earned surplus 438 180 Goodwill 17 960 Cash dividends declared 8 000 Total 914 020 Total 914 020 Notes: 1. Dividends received from investment in associated company $10 000 and purchase discounts $20 250. 2. Freight in $1 400 and freight out $2 000. 3. Transfer represents depreciation - expenses on plant and equipment of $24 000 and buildings of $14 000. 4. Extraordinary items: (a) Loss due to Hurricane Ivan $176 900 (b) Loss due to obsolete inventory $20 000 S. Corporation tax rate is 20 per cent. 6. Investments: (a) Marketable securities $28 000 (b) Long-term investment $222 000 7 Property includes the land $110 000 and building $175 000. 8. Mortgage payable is $25 000 due in 2007. 9. Bonds payable are 5-year bonds. 10. Reserves include the accumulated depreciation figure of $38 000 and share premium of $40 800. Please note: The company had paid corporation tax in the amount of $100 020 based on its calculation of the profit before tax. A recalculation of the net income before tax by the Inland Revenue Department shows that the company has prepaid corporation taxes of $48 140 instead of unpaid taxes of $14 000. Prepare an income statement and a balance sheet for MHI for the year ending December 31, 2006 using International Accounting Standards. (30 marks] Total 35 marks GO ON TO THE NEXT PAGE 02101020/CAPE/2007