Question 3.3 (Total: 45 marks; part 1: 24 marks; part 2: 15 marks; part 3: 6 marks)

Star Finder Inc. has provided the following information for the year ended December 31, 2021:

Sales revenue	$1,300,000	Loss on inventory due to decline in net realizable value	$80,000
Unrealized gain on FV-OCI equity investments	42,000	Loss on disposal of equipment	35,000
Interest income	7,000	Depreciation expense related to buildings omitted by mistake in 2020	55,000
Cost of goods sold	780,000	Retained earnings at December 31, 2020	980,000
Selling expense	65,000	Loss from expropriation of land	60,000
Administrative expense	48,000	Dividends declared	45,000
Dividend revenue	20,000

The effective tax rate is 25% on all items. Star Finder Inc. prepares financial statements in accordance with IFRS. The FV-OCI equity investments trade on the stock exchange. Gains/losses on FV-OCI investments are not recycled through net income.

Required:

1. Prepare a multi-step statement of financial performance for 2021, showing expenses by function. Ignore calculation of EPS.

2. Prepare the retained earnings section of the statement of changes in equity for 2021.

3. Prepare the journal entry to record the depreciation expense omitted by mistake in 2020.