Mackay Ltd reported sales revenue of $16 million for the year ended 30 June 2017. In preparing the financial statements the following matters were considered:

(a) Income tax expense for the year ended 30 June 2017 was $218 640.

(b) Financial restructuring has resulted in the disposal of land, bought in 2006 for future expansion, for a profit of $200 000.

(c) A dividend of $26 000 has been received from a subsidiary company.

(d) Other expenses incurred:

Interest $480,000
Wages and salaries 5,492,000
Selling expenses 2,500,000
Administration expenses 100,000
Bad debts 200,000
Other expenses 440,667
Electricity/water 480,000
Cost of sales 5,000,000



(e) On 10 October 2016, plant with a carrying amount of $320 000 was destroyed by an earthquake.

 (f) During the period, non-current assets were revalued upwards by a net $120 000.

(g) The foreign currency translation reserve fell by $60 000 as a result of translating the financial statements of a foreign operation.

(h) Balance of retained earnings as at 1 July 2016 was $567 040.


Required Prepare a statement of comprehensive income in accordance with the requirements of AASB 101 with expenses classified by nature on the face of the statement. Show your workings in notes.

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