The equity accounts of Good Karma Corp. as at January 1, 2017, were as follows:

Retained earnings, January 1, 2017 ............................... $257,600

Common shares ...................................................... 600,000

Preferred shares ...................................................... 250,000

Contributed surplus ................................................. 300,000

Accumulated other comprehensive income ....................... 525,000

During 2017, the following transactions took place:

Instructions
Prepare a statement of changes in equity for the year ended December 31, 2017. The company follows IFRS. Assume that investments are accounted for as FV-OCI investments, with gains/losses recycled through net income.

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Adjustment to correct error in prior years (gain net of tax) Unrealized gains on FV-OCI investments (net of tax) Dividends: $48,000 82,000 Common shares Preferred shares 120,000 62,000 Issue of equity: Common shares Preferred shares 300,000 5,000 325,000 Net income