Accounting · Corporate Accounting

Derik Co. has a financial year-end of 30 September 20X4. Its financial statements were authorized for issue on 1 December 20X4. The draft financial statements show a profit before tax of $1,500,000. The following events occurred after 30 September 20X4: 1. Product Warranty Claim: On 15 October 20X4, a significant claim of $120,000 was made against the company for a product sold on 10 September 20X4 with a known defect. The amount was confirmed on 20 November 20X4. No specific provision had been made for this claim, although a general warranty provision of $80,000 existed at year-end based on historical averages. 2. Sale of Investment Property: On 5 November 20X4, an investment property (carried under the fair value model) was sold for $2,200,000. Its fair value at 30 September 20X4 was $2,000,000. 3. Bonus Issue: On 20 November 20X4, the board approved a 1-for-5 bonus issue. What is the adjusted profit before tax for the year ended 30 September 20X4, and the total value of liabilities related to provisions in the statement of financial position as at 30 September 20X4, after considering only the adjusting events?