Below is the trial balance in no particular order for Hughey Ltd. as at December 31, 2021:

Additional information as at December 31, 2021:
1. The inventory has a net realizable value of $1,350,000. The company uses FIFO method of inventory valuation.
2. Investments in available for sale securities (FVOCI) have a fair value of $2,250,000.

3. The company purchased patents of $60,000 on January 1, 2015.
4. Bonds are 8%, 25-year and pay interest annually each January 1, and are due December 31, 2030.
5. The 7%, notes payable represent bank loans that are secured by investments in available for sale securities (FVOCI) with a carrying value of $800,000. Interest is paid each December 31 and no principal is due until its maturity on April 30, 2022.
6. The capital structure for the common shares are # of authorized, 100,000 shares;
issued and outstanding, 80,000 shares.
Required:

a. Prepare a classified statement of financial position as at December 31, 2021, in good form, including all required disclosures identified in Chapter 4.

b. Calculate the annual amortization for the patent.

c. Does this company follow IFRS or ASPE? Explain your answer.

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Hughey Ltd. Trial Balance As at December 31, 2021 Debits Credits Cash $ 250,000 Accounts receivable 1,015,000 Allowance for doubtful accounts $ 55,000 Prepaid rent 40,000 Inventory 1,300,000 Investments - available for sale (FVOCI) 2,100,000 Land 530,000 Building 770,000 Patents (net) Equipment 25,000 2,500,000 Accumulated depreciation, equipment Accumulated depreciation, building Accounts payable Accrued liabilities 1,200,000 300,000 900,000 300,000 Notes payable 600,000 Bond payable Common shares Accumulated other comprehensive income Retained earnings $8,530,000 $8,530,000 1,100,000 2,500,000 245,000 1,330,000