Question

Problem 4-04 a-b

Grouper Inc. reported income from continuing operations before tax of $2,416,500 during 2020. Additional transactions occurring in 2020 but not included in the $2,416,500 were as follows:

1.		The corporation experienced an insured flood loss of $108,000 during the year.
2.		At the beginning of 2018, the corporation purchased a machine for $64,800 (residual value of $14,400) that has a useful life of six years. The bookkeeper used straight-line depreciation for 2018, 2019, and 2020, but failed to deduct the residual value in calculating the depreciable amount.
3.		The sale of FV-NI investments resulted in a loss of $144,450.
4.		When its president died, the corporation gained $135,000 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of $62,100. (the gain is non-taxable.)
5.		The corporation disposed of its recreational division at a loss of $155,250 before tax. Assume that this transaction meets the criteria for accounting treatment as discontinued operations.
6.		The corporation decided to change its method of inventory pricing from average cost to the FIFO method. The effect of this change on prior years is to increase 2018 income by $81,000 and decrease 2019 income by $27,000 before taxes. The FIFO method has been used for 2020.

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Prepare an income statement for the year 2020, starting with income from continuing operations before income tax. Calculate earnings per share as required under IFRS. There were 151,365 common shares outstanding during the year. (Assume a tax rate of 30% on all items, unless they are noted as being non-taxable.) (Round answers to 0 decimal places, e.g. 5275. Round EPS answers to 2 decimal places, e.g. 52.75. )

Grouper Inc. Income Statement (Partial)  For the Month Ended December 31, 2020For the Year Ended December 31, 2020December 31, 2020
Gain on disposal of recreational divisionDiscontinued OperationsEarnings Per ShareNet Income / (Loss)Income from Continuing OperationsIncome from Continuing Operations before Income TaxApplicable Income Tax ReductionIncome Tax ExpenseLoss on Disposal of Recreational Division				$
Income Tax Expense    Loss on Disposal of Recreational Division    Income from Continuing Operations    Earnings Per Share    Discontinued Operations    Income from Continuing Operations before Income Tax    Net Income / (Loss)    Gain on disposal of recreational division    Applicable Income Tax Reduction
Net Income / (Loss)Income from Continuing Operations before Income TaxIncome Tax ExpenseLoss on Disposal of Recreational DivisionGain on disposal of recreational divisionIncome from Continuing OperationsApplicable Income Tax ReductionDiscontinued OperationsEarnings Per Share
Income from Continuing Operations before Income TaxLoss on Disposal of Recreational DivisionDiscontinued OperationsEarnings Per ShareNet Income / (Loss)Income from Continuing OperationsIncome Tax ExpenseGain on disposal of recreational divisionApplicable Income Tax Reduction
Net Income / (Loss)    Applicable Income Tax Reduction    Gain on disposal of recreational division    Discontinued Operations    Loss on Disposal of Recreational Division    Earnings Per Share    Income from Continuing Operations    Income from Continuing Operations before Income Tax    Income Tax Expense		$
AddLess :          Net Income / (Loss)    Income from Continuing Operations before Income Tax    Applicable Income Tax Reduction    Discontinued Operations    Income Tax Expense    Earnings Per Share    Income from Continuing Operations    Loss on Disposal of Recreational Division    Gain on disposal of recreational division
Income from Continuing OperationsEarnings Per ShareIncome from Continuing Operations before Income TaxIncome Tax ExpenseLoss on Disposal of Recreational DivisionGain on disposal of recreational divisionNet Income / (Loss)Applicable Income Tax ReductionDiscontinued Operations				$
Income from Continuing OperationsIncome from Continuing Operations before Income TaxIncome Tax ExpenseDiscontinued OperationsEarnings Per ShareLoss on Disposal of Recreational DivisionNet Income / (Loss)Gain on disposal of recreational divisionApplicable Income Tax Reduction
Income from Continuing Operations before Income TaxIncome Tax ExpenseLoss on Disposal of Recreational DivisionNet Income / (Loss)Income from Continuing OperationsGain on disposal of recreational divisionApplicable Income Tax ReductionDiscontinued OperationsEarnings Per Share				$
Loss on Disposal of Recreational DivisionEarnings Per ShareNet Income / (Loss)Gain on disposal of recreational divisionApplicable Income Tax ReductionDiscontinued OperationsIncome from Continuing Operations before Income TaxIncome from Continuing OperationsIncome Tax Expense
Discontinued OperationsEarnings Per ShareIncome from Continuing OperationsGain on disposal of recreational divisionIncome from Continuing Operations before Income TaxIncome Tax ExpenseLoss on Disposal of Recreational DivisionNet Income / (Loss)Applicable Income Tax Reduction				$

(*Need help for this question)

Assume that beginning retained earnings for 2020 is $3,429,000 and that dividends of $236,250 were declared during the year. Prepare the retained earnings portion of the statement of changes in equity for 2020. (Round answers to 0 decimal places, e.g. 1525. List items that increase retained earnings first.)

Grouper Inc. Excerpt from Statement of Changes in Equity  December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020
Retained Earnings, January 1, 2020, As AdjustedDividends DeclaredEarning Per ShareRetroactive Adjustment for Change in Inventory Method (Net of Tax)Retained Earnings, December 31, 2020Correction of Depreciation Overstatement (Net of Tax)Retained Earnings, January 1, 2020, As ReportedGross Profit / (Loss)Net Income / (Loss)				$
Net Income / (Loss)    Dividends Declared    Retroactive Adjustment for Change in Inventory Method (Net of Tax)    Retained Earnings, December 31, 2020    Gross Profit / (Loss)    Earning Per Share    Retained Earnings, January 1, 2020, As Reported    Retained Earnings, January 1, 2020, As Adjusted    Correction of Depreciation Overstatement (Net of Tax)		$
Retained Earnings, December 31, 2020    Retroactive Adjustment for Change in Inventory Method (Net of Tax)    Dividends Declared    Retained Earnings, January 1, 2020, As Adjusted    Earning Per Share    Retained Earnings, January 1, 2020, As Reported    Correction of Depreciation Overstatement (Net of Tax)    Gross Profit / (Loss)    Net Income / (Loss)
Retained Earnings, January 1, 2020, As AdjustedGross Profit / (Loss)Correction of Depreciation Overstatement (Net of Tax)Retained Earnings, December 31, 2020Retained Earnings, January 1, 2020, As ReportedRetroactive Adjustment for Change in Inventory Method (Net of Tax)Dividends DeclaredEarning Per ShareNet Income / (Loss)				$
AddLess :   Correction of Depreciation Overstatement (Net of Tax)Net Income / (Loss)Retroactive Adjustment for Change in Inventory Method (Net of Tax)Earning Per ShareRetained Earnings, December 31, 2020Gross Profit / (Loss)Dividends DeclaredRetained Earnings, January 1, 2020, As AdjustedRetained Earnings, January 1, 2020, As Reported
AddLess :   Correction of Depreciation Overstatement (Net of Tax)Retained Earnings, January 1, 2020, As AdjustedRetained Earnings, January 1, 2020, As ReportedRetained Earnings, December 31, 2020Retroactive Adjustment for Change in Inventory Method (Net of Tax)Dividends DeclaredEarning Per ShareGross Profit / (Loss)Net Income / (Loss)
Gross Profit / (Loss)Net Income / (Loss)Retained Earnings, December 31, 2020Retained Earnings, January 1, 2020, As AdjustedRetroactive Adjustment for Change in Inventory Method (Net of Tax)Retained Earnings, January 1, 2020, As ReportedCorrection of Depreciation Overstatement (Net of Tax)Dividends DeclaredEarning Per Share				$