The following is information for Gottlieb Corp. for the year ended December 31, 2020:

The effective tax rate is 25% on all items. Gottlieb 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.

Instructions

a. Prepare a multiple-step statement of financial performance for 2020, showing expenses by function. Ignore calculation of EPS.

b. Prepare the retained earnings section of the statement of changes in equity for 2020.

c. Prepare the journal entry to record the depreciation expense omitted by mistake in 2019.

d. How should Gottlieb account for the unrealized gain on FV-OCI investments if it prepares financial statements in accordance with ASPE? How would Gottlieb?s retained earnings balance at December 31, 2019 be different if financial statements in all previous years had been prepared in accordance with ASPE?

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Loss on inventory due to decline in net realizable value Loss on disposal of equipment Depreciation expense related to buildings omitted by mistake in 2019 Retained earnings at December 31, 2019 Loss from expropriation of land Dividends declared Sales revenue $1,300,000 Unrealized gain on FV-OCI equity investments Interest income Cost of goods sold Selling expenses Administrative expenses Dividend revenue $ 80,000 42,000 7,000 780,000 65,000 48,000 20,000 55,000 980,000 60,000 45,000