Lab Work 6 We will work on this lab work using the same groups as in Lab work 5 POSH Corporation, a French affiliate of a major U.S based Company, has the following activities during 2021. Starts the year o Cash equity investment. 95 Million o Acquires a commercial building valued 70 Million 15 Million 5 Million. o Purchased office equipment o Invest in long term investment During the year o Sales revenue COGS o Paid selling and administration expenses End of the year, o Purchase new IT system Paid corporation taxes Employee's bonuses o Received dividend income The commercial building & Land Attributed to: o Building 80% of the original purchase price o Land 20% of the original Price 35 million 15 million 4 million. $2,000,000 500,000 1,000,000 200,000 Estimated useful life of the building The office equipment o Estimated useful life The IT system o Estimated useful life 20 years 10 years 5 years. All assets are depreciated using straight line method. The consumer price index: o End of the year o Beginning of the year 130 110 o Average during the year. 120 Required: A. Calculate the Depreciation Expense for the year: The Building o The Office Equipment B. Compute the Monetary Gain or loss C. Prepare the Income Statement for POSH Corporation as at 31 December 2021 using: o The historical model o Historical cost constant dollar model. Answer: A. Calculate the Depreciation Expense for the year: The Building The Office Equipment o The IT System