(a)

The following information is also provided: Stock 31/12/2022: €25,000 Depreciation: Buildings 2% Equipment 20%

Workings:   274,000 x 2% = 5,480 92,800 x 20% = 18,560

(b)

(c)

(i) Suitable source of finance (any of the following):

• Share capital/equity
• Mortgage

Reason:
Share capital – the business can raise finance by selling additional shares. No interest has to be repaid on this.

Mortgage – this is a loan used to purchase or expand property. Although interest will have to be paid, there will be no dilution of control of the business associated with selling additional shares.

(ii) Economic benefits (any two of the following):

• The Irish Government receives corporation tax on the profits of businesses like Cupán Eco Ltd., which increases government income.
• The Irish Government receives income tax from the wages of employees of businesses like Cupán Eco Ltd., which increases government income.
• Businesses like Cupán Eco Ltd. create employment, which reduces government spending on job seeker’s benefit.

(iii) Cupán Eco Ltd., has the responsibility to (any two of the following):

• Ensure the business does not negatively affect the local environment.
• Provide employment to local people.
• Pay local authority rates to the local authority (city or county council).
• Invest money in the local community, e.g., sponsor local teams or events.