Canada Paste Inc. reported a $1-million charge in the current year, net of income tax, after adopting new accounting policies mandated by the International Accounting Standards Board. For the same year, Canada Paste reported $54 million in profit (after income tax).
Instructions
(a) Indicate where, and how, this $1-million charge would be reported on Canada Paste's financial statements.
(b) Based on the information provided above, what is Canada Paste's sustainable income?