Please answer P4-12 On Time Clock Company Inc. Instructions a) and b)

Problems 201 ON TIME CLOCK COMPANY INC, Excerpt from Statement of Changes in Equity For the Year Ended Decembet 3t,2OL7 Retained earnings, JanuarY Add: s2 i 6,000 7,2017 $108,528 Net income for 2077 Gain on sale of long-term investments Deduct: Loss on expropriation Correction of mathematical error (net of tax) Retained earnings, December 31,400 $139,928 13,000 17,186 (30,186) 709'742 932511? 31' 2Ol7 lnstructions are accounted for as FV-OCI (a) Assume that On Time Clock Company follows IFRS. Assume that investments comprehensive income showof statement a Prepare net income. ti*oogh .."y.l.d gains/los.", invesffnents with ing expenses by function. Ignore calculation of EPS' statement of changes (b) prepare the retained earnings and accumulated other comprehensive income portion of the income' comprehensive other accumulated in of in equiry. Assume an openinlg balance $120,000 2017, the company reported Faldo Corp. is a public company and has 100,000 common shares outstanding. In transactions not considered in the income from continuing operation, b.io." income rax of $2,7l0,000.Additional $2,7 I 0,000 are as follows: p4-1g and had accumulated 2017,Faldo Corp. sold equipment for $140,000. The machine had originally cost $80,000 ordinary. is considered or loss gain The depreciation to dati of $36,000. at a loss of$290,000 before 2. The company discontinued operations ofone ofits subsidiaries during the currentyear on operation of the disloss The Lperations. tax. Assume that this rransaction meets the criteria for discontinued before tax' was $200,000 subsidiary the of disposal from loss The continued subsidiary was $90,000 before tax. contract' Before the decision, Iegal 3. The sum of $520,000 was received as a result of a lawsuit for a breached 2014 counsel was uncerrain about the outcome of the suit and had not established a receivable. l.In +. ln of accounts receivable that had 2Ol7 ,the company reviewed its accounts receivable and determined that $54,000 was previously set up' accounts doubtful for allowance No unlikely to be collected. been carried fo, y"rl, ,pp.ared 5. An internal atdit discovered that amortization ofintangible assets period. The amount was charged against retained earnings' r^/as understated by $35,000 (net oftax) in a prior lnstructions 2017, starting with income from continu* Analyzethe above information and prepare an income statement for the year on the face of the income stateing operations before income tax. ialculate earnings per share as it should be shown indicated') otherwise unless ,rrErr,. (A.rrr..re a total effective tax fate of 25% on all items, business on January I , 2Ol] .It has been -successful and now Amos Corporation was incorporated and began "firrnce an expansion. The bank has requested an audited income requires a bank loan for addirional -orkiog .rpitrl to provides you with the following income statement for the year 2017 using IFRS. Tf,e aicorntrnt for Amos Corporation statement, which Amos plans to submit to the bank: p4-14 AMOS CORPORATION lncome Statement $850,000 32,300 27,300 Sales revenue Dividend revenue (unusual) Gain on recovery of insurance proceeds from earthquake loss Unrealized holding gain on FV-OCl investments 5,000 914,600 Less: Selling expenses Cost of goods sold Advertising expense Loss on inventory due to decline in NRV Loss on discontinued oPerations i n istrative expenses Adm lncome before income tax lncome tax Net income $100,1 00 510,000 13,700 34,000 48,600 73,400 779,800 134,800 33,700 qlql_qg Reporting Financial Performance CHAPTER 4 200 ) 'l-herc r'r,et'e slrares u'erc purchasetl : +00,000 conlllron shtres ourstrlltrliuEl at the er-rrl of 2017. No additi