NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2000 Note Consolidated Company 2000 1999 2000 1999 $ $ $ $ 4. SALES OF ASSETS Sales of assets in the ordinary  course of business have given rise  to the following profits and losses Net Profits Property, plant and equipment 20,280 – – – Net Losses Property, plant and equipment – 17,405 – – 5. INCOME TAX The prima facie income tax on pre-tax  accounting (loss) profit reconciles to the  income tax expense (benefit) in the  financial statements as follows: Operating (loss) profit (283,491) 4,081,912 190,559 1,110,792 Income tax calculated at 36% of  operating (loss) profit (102,057) 1,469,488 68,601 399,885 Permanent differences: Dividend received from  controlled entity – – – (396,000) Write off of goodwill – 33,106 – – Revaluation depreciation 85,538 64,823 – – Entertainment 5,404 7,758 – – Legal 4,707 21,630 – – Other items 6,745 30,188 – – Tax losses transferred from a  controlled entity for no  consideration – – (68,601) – Abnormal Items: Effect on future income tax benefit  and provision for deferred income  tax due to the change in income  tax rate from 36% to 34%  (effective 1 July 2000) and 30%  (effective 1 July 2001) (104,812) – – – (104,475) 1,626,993 – 3,885 (Over)/under provision of income  tax in previous year 28,941 – – – Income tax attributable to  operating profit (75,534) 1,626,993 – 3,885 43