Question

The following is information for Marigold Corp. for the year ended December 31, 2020: $1,130,000 Loss on inventory due to decline in net realizable value $87,000 Sales revenue Unrealized gain on FV-OCl equity investments 43,000 Loss on disposal of equipment 45,000 Interest income 9.000 53,000 678,000 Cost of goods sold Selling expenses Administrative expenses Dividend revenue Depreciation expense related to buildings omitted by mistake in 2019 Retained earnings at December 31, 2019 Loss from expropriation of land Dividends declared 56,500 49,000 16,000 950,000 57.000 43.000 The effective tax rate is 35% on all items. Marigold prepares financial statements in accordance with IFRS. The FV-OCl equity investments trade on the stock exchange. Gains/losses on FV-OCl investments are not recycled through net income.

Answer 1

Marigold Corp. Statement of Financial Performance For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold Less: Loss of inventory due to NRV Gross income Less: Operating expenses: Selling expenses 56,500 Administrative expenses 49,000 Loss on disposal of equipment 45,000 Undercharged depreciation 53,000 Loss for expropriation (abnormal loss) 57,000 1,130,000 678,000 87,000 365,000 Total operating expense 260,500 Operating income (EBIT) 104,500 Add: Interest income 9,000 Add: Dividend revenue 16,000 EBT 111,500 Less: Income tax expense (111500*35%) 39,025 Net income $ 72,475 Items that will not be reclassified subsequently to net income or loss: Unrealized gain on FV-OCl equity $ 43,000 $ 43,000 Explanation: Unrealized gain will be recorded on the statement of comprehensive income. Marigold Corp. Statement of Changes in Equity For the Year Ended December 31, 2020 Retained Earnings 950,000 72,475 Beginning Balance Add: Net income Less: Dividend Ending Balance 43,000 979,475 $ Date Credit Debit 53,000 unt Titles and Explanation Depreciation Expense Accumulated Depreciation (To record the depreciation expense ommited in 2019) 53,000 Please give likes for the work. Thanks & Regards.