Amos Corporation was incorporated and began business on January 1, 2020. It has been successful and now requires a bank loan for additional capital to finance an expansion. The bank has requested an audited income statement for the year 2020 using IFRS. The accountant for Amos Corporation provides you with the following income statement, which Amos plans to submit to the bank:

Amos had 100,000 common shares outstanding during the year and has an effective tax rate of 25%. Gains/losses on FV-OCI equity investments are not recycled through net income.

Instructions

a. Show the deficiencies in the income statement as it currently is. Assume that the corporation prepares a single-step income statement.

b. Prepare a revised single-step statement of comprehensive income.

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Amos Corporation Income Statement Sales revenue $850,000 32,300 27,300 Dividend revenue Gain on recovery of earthquake loss (unusual) Unrealized holding gain on FV-OCI equity investments 5,000 914,600 Less: Selling expenses Cost of goods sold Advertising expense Loss on inventory due to decline in net realizable value Loss on discontinued operations Administrative expenses $100,100 510,000 13,700 34,000 48,600 779,800 73,400 Income before income tax 134,800 Income tax expense 33,700 $101,100 Net income